Retail

What to Look For in Whole Foods Earnings

courtesy of Whole Foods Market Inc.

Whole Foods Market Inc. (NASDAQ: WFM) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters are calling for $0.24 in earnings per share (EPS) and $3.5 billion in revenue. The same period of last year reportedly had EPS of $0.30 and $3.44 billion in revenue.

This company is rated as Outperform on the Credit Suisse Focus List, with a $40 price target. That is 40% in implied upside from the current price level.

Credit Suisse analyst Edward Kelly’s only catalyst listed in the Focus List review was upcoming earnings, which might bring at least some pause from investors. After all, earnings trends for Whole Foods, as well as organic and natural foods players and grocery stores in general, have not been so positive as investors were used to seeing for years.

A few analysts weighed in on Whole Foods prior to the earnings release:

  • Barclays has an Equal Weight rating with a $30 price target.
  • Goldman Sachs reiterated a Sell rating with a $28 price target.
  • Citigroup has a Neutral rating with a $30 price target.
  • Oppenheimer reiterated an Outperform rating with a $38 price target.
  • Argus reiterated a Hold rating.

So far in 2016, Whole Foods has underperformed the broad markets, with the stock down 15%. Over the past 52 weeks, the stock is down only 9%.

Shares of Whole Foods were last seen down about 0.6% at $28.49 on Wednesday, with a consensus analyst price target of $30.47 and a 52-week trading range of $27.67 to $35.58.

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