Whole Foods Market Beats Up on Analysts Yet Again

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Whole Foods Market (NAS: WFM) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 8 (Q2), Whole Foods Market met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
Whole Foods Market reported revenue of $2.67 billion. The 19 analysts polled by S&P Capital IQ anticipated revenue of $2.67 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $2.35 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.64. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.59 per share. GAAP EPS of $0.64 for Q2 were 25% higher than the prior-year quarter's $0.51 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.3%, 70 basis points better than the prior-year quarter. Operating margin was 7.1%, 100 basis points better than the prior-year quarter. Net margin was 4.4%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.72 billion. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $11.65 billion. The average EPS estimate is $2.47.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,147 members out of 4,714 rating the stock outperform, and 567 members rating it underperform. Among 1,466 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,365 give Whole Foods Market a green thumbs-up, and 101 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Whole Foods Market is outperform, with an average price target of $87.18.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.The Motley Fool owns shares of Whole Foods Market. Motley Fool newsletter services have recommended buying shares of Whole Foods Market. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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