What to Look for When Whole Foods Market (WFM) Reports Q3 Earnings
NEW YORK (TheStreet) -- Shares of Whole Foods (WFM) are falling 0.81% to $34.29 in midday trading as the company prepares to report 2016 third quarter earnings on Wednesday after the market close.
Analysts are looking for earnings of 37 cents per share on revenue of $3.73 billion.
For the 2015 third quarter, the company reported diluted earnings per share of 43 cents and revenue of $3.63 billion.
Analysts at Macquarie Research upgraded Whole Foods to an "outperform" rating from "neutral" yesterday ahead of its earnings report, saying the company is positioned to report strong results despite "well-known challenges."
The firm added that the company is a "best-in-class operator with an iconic brand."
On the other hand, Goldman Sachs said in a note this morning that the company could face issues from competition. "The industry is mature and hyper-competitive, and the backdrop subdued, with no sign of inflection," the firm said, lowering its rating to "sell" from "neutral."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Rating rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, TheStreet Ratings finds weaknesses including a generally disappointing performance in the stock itself and deteriorating net income.
You can view the full analysis from the report here: WFM