Does The Street Have Whole Foods Market Figured Out?

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Whole Foods Market (NAS: WFM) is expected to report Q2 earnings on May 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Whole Foods Market's revenues will expand 13.5% and EPS will grow 14.1%.

The average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $0.73.


Revenue details
Last quarter, Whole Foods Market reported revenue of $3.86 billion. GAAP reported sales were 14% higher than the prior-year quarter's $3.39 billion.

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

EPS details
Last quarter, EPS came in at $0.78. GAAP EPS of $0.78 for Q1 were 20% higher than the prior-year quarter's $0.65 per share.

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

Recent performance
For the preceding quarter, gross margin was 35.0%, 30 basis points better than the prior-year quarter. Operating margin was 6.2%, 50 basis points better than the prior-year quarter. Net margin was 3.8%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $13.05 billion. The average EPS estimate is $2.87.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,661 members out of 5,226 rating the stock outperform, and 565 members rating it underperform. Among 1,546 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,449 give Whole Foods Market a green thumbs-up, and 97 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 $103.71.

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The article Does The Street Have Whole Foods Market Figured Out? originally appeared on Fool.com.

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 recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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