Sprouts Farmers Market (SFM) Stock Tanks After Q1 Revenue Miss

NEW YORK (TheStreet) -- Sprouts Farmers Market (SFM) - Get Report stock is retreating 8.02% to $25.18 on heavy trading volume on Thursday afternoon after the grocery store chain reported lower-than-expected quarterly revenue for the first three months of 2016.

For the 2016 first quarter, revenue jumped 16% year over year to $993.24 million, but missed estimates of $1.01 billion.

The Phoenix-based company reported earnings of 30 cents per share for the quarter ended April 3, beating estimates by a penny.

"Despite a near zero inflationary environment, our team delivered another solid quarter of comparable store sales growth and robust earnings improvement," CEO Amin Maredia said in a statement.

Comparable store sales increased 4.8% for the latest quarter, while two-year comparable store sales were up 9.5%.

So far today, 5.88 million shares of Sprouts Farmers Market have traded, more than double its average trading volume of 2.29 million shares.

Separately, Sprouts Farmers Market has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's robust revenue growth, impressive record of earnings per share growth and compelling growth in net income, which offsets disappointing stock performance, premium valuation and poor profit margins.

You can view the full analysis from the report here: SFM

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 article's author.