Whole Foods Wins on Earnings for Once

Whole Foods Market Inc. (NASDAQ: WFM) reported its fiscal first-quarter financial results after the markets closed Wednesday. This organic and natural foods seller had $0.46 in earnings per share (EPS) on $4.8 billion in revenue. Thomson Reuters had its consensus estimates at $0.40 in EPS on $4.81 billion in revenue. The same period from the previous year had $0.46 in EPS on $4.67 billion in revenue.

In the fiscal first-quarter comparable store sales on a constant currency basis decreased 1.8%.

Guidance for the 2016 fiscal year calls for sales growth of 3% to 5%, approximately 30 new stores including three 365 stores and two-to-three relocations, and return on invested capital of 13.5%. This sales outlook reflects comparable sales in the range of -2% to 0%. There are consensus estimates that call for $1.53 in EPS on $16.00 billion in revenue for fiscal 2016.

During the quarter, the company produced $232 million in cash flow from operations. On the books, cash, equivalents, and short term investments totaled $809 million at the end of the quarter, compared to $392 million at the end of fiscal 2015.
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Walter Robb, co-CEO of Whole Foods Market, commented on earnings:

We delivered record sales of $4.8 billion this quarter and are pleased with the progress we have made on our nine-point plan outlined in November. We improved our cost structure, stepped up our value efforts, and are excited to announce today the national launch of digital coupons within our mobile app. We believe we will deliver strong returns to shareholders over the long term as we improve our price perception, better communicate our higher quality standards and differentiation, and continue to fundamentally evolve our business.

Shares of Whole Foods closed Wednesday down 0.7% at $28.87, with a consensus analyst price target of $29.42 and a 52-week trading range of $28.07 to $57.57. Following the release of the earnings report, the stock was up 4.2% at $30.08 in the after-hours trading session.