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Free Post Earnings Research Report: Sprouts Farmers’ Sales Jumped 16%; EPS Surged 44%

Stock Monitor: Smart & Final Stores Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 14, 2017 / Active-Investors free earnings report on Sprouts Farmers Market, Inc. (NASDAQ: SFM) ("Sprouts Farmers") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SFM. The Company reported its third quarter fiscal 2017 operating results on November 02, 2017. The natural and organic food retailer outperformed top- and bottom-line expectations, and raised its guidance for the full year 2017. Register today and get free access to our complimentary member's area where many more reports are available:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Smart & Final Stores, Inc. (NYSE: SFS), which also belongs to the Services sector as the Company Sprouts Farmers Market. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=SFS

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sprouts Farmers Market most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=SFM

Earnings Highlights and Summary

For the thirteen weeks ended October 01, 2017, Sprouts Farmers' net sales advanced 16% to $1.21 billion compared to $1.94 billion in Q3 2016, driven by a 4.6% increase in comparable store sales and a strong performance in new stores opened. The Company's net sales numbers beat analysts' estimates of $1.18 billion.

During Q3 2017, Sprouts Farmers' gross profit increased 19% to $346 million on y-o-y basis, resulting in a gross profit margin of 28.7%, and reflecting a growth of 60 basis points compared to Q3 2016, primarily driven by cycling a heightened promotional environment in Q3 2016, in addition to the leverage from increased comparable store sales.

For Q3 2017, Sprouts Farmers' direct store expenses (DSE) advanced 15% to $250 million, or 20.7% of sales, compared to 20.9% of sales in Q3 2016, primarily driven by an improved comparable store sales, as well as operating efficiencies, but partially offset by higher benefit costs. The Company's selling, general, and administrative expenses (SG&A) surged 35% to $40 million, or 3.3% of sales, for the reported quarter compared to 2.9% of sales in the year-ago same period, primarily reflecting higher bonus expenses due to improved performance and other corporate costs versus the prior year's comparable period.

Sprouts Farmers' net income surged 32% to $31.49 million for Q3 2017 compared to $23.89 million in Q3 2016. The Company's diluted earnings per share (EPS) soared 44% to $0.23 compared to $0.16 for the year-ago corresponding period, and was driven by higher sales margins, fewer shares outstanding due to the Company's repurchase program, and a lower effective tax rate. Sprouts Farmers' earnings exceeded Wall Street's estimates of $0.17 per share.

Growth and Development

During Q3 2017, Sprouts Farmers opened 8 new stores; one each in Arizona and Florida, and two each in California, Nevada, and Tennessee. The Company has opened three additional stores opened in Q4 2017, till the date of the earnings release, resulting in a total of 32 new stores opened year-to-date for a total of 285 stores in 15 states as of November 02, 2017.

Leverage and Liquidity

Sprouts Farmers generated cash from operations of $259 million year-to-date through October 01, 2017, and invested $151 million in capital expenditure, net of landlord reimbursement, primarily for new stores. Furthermore, the Company repurchased 3.2 million shares of its common stock for a total investment of $72 million during the reported quarter. Year-to-date through October 31, 2017, the Company has repurchased 9.1 million shares of its common stock for a total investment of $192 million.

Sprouts Farmers ended Q3 2017 with a $349 million balance on its revolving credit facility; $25 million of letters of credit outstanding under the facility; $19 million in cash and cash equivalents; and $138 million available under its current share repurchase authorization.

Outlook

Sprouts Farmers raised its guidance for the full year 2017. For FY17, the Company is forecasting sales growth of 14.5% to 15%, and comparable store sales growth of 2.4% to 3.0% compared to the previous forecasts for sales growth of 13% to 14%, and comparable store sales growth of 1.5% to 2.0%. The Company is estimating earnings in the range of $0.98 to $0.99 per diluted share versus the earlier forecasts of $0.88 to $0.92 per diluted share.

Stock Performance Snapshot

December 13, 2017 - At Wednesday's closing bell, Sprouts Farmers Market's stock slightly climbed 0.30%, ending the trading session at $23.68.

Volume traded for the day: 1.43 million shares.

Stock performance in the last month – up 13.57%; previous three-month period – up 25.09%; past twelve-month period – up 17.23%; and year-to-date – up 25.16%

After yesterday's close, Sprouts Farmers Market's market cap was at $3.14 billion.

Price to Earnings (P/E) ratio was at 24.36.

The stock is part of the Services sector, categorized under the Grocery Stores industry. This sector was up 0.2% at the end of the session.

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