Shares closed Wednesday trading at $40.82 but have dropped nearly 11% after hours. Shares are up nearly 11% for the past 52 weeks but down 19% so far this year.
For the third quarter, the company posted a profit of 43 cents a share, missing Wall Street estimates by 2 cents. Whole Foods raked in record sales of $3.63 billion but missed analysts' expectations of $3.69 billion, according to Thomson Reuters data. In the same period of last year, the company earned 41 per share on sales of $3.38 billion.
The company also reported same-store sales that fell below analysts' estimates for the quarter. Comparable-store sales on a constant currency basis increased by 1.3%. Analysts were expecting same-store sales to rise by at least 2.9%.
The company also issued lower-than-expected fourth-quarter guidance. For the full year ending in September, earnings are expected by analysts to rise by 10% from a year ago to $1.72 a share while revenue is expected to jump 9% to $15.59 billion.
TheStreet Ratings team rates WHOLE FOODS MARKET INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WHOLE FOODS MARKET INC (WFM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
You can view the full analysis from the report here: WFM Ratings Report