NEW YORK (TheStreet) -- Shares of Whole Foods Market Inc (WFM) were tumbling, down 10.58% to $36.50 in after-hours trading Wednesday, following the release of the organic grocer's latest quarterly earnings results.
For the third quarter, the company earned 43 cents per share on revenue of $3.63 billion.
Wall Street was expecting the company to earn 45 cents a share on revenue of $3.69 billion, according to analysts polled by Thomson Reuters.
In addition, 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%, according to CNBC.
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.
Shares of Whole Foods closed at $40.85 in the regular session today.
Austin, Texas-based Whole Foods Market is a retailer of natural and organic foods and grocer.
The company operates about 362 natural and organic foods supermarkets.
Its product selection includes grocery, meat, seafood, bakery, prepared foods and catering, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, and lifestyle products.
Insight from TheStreet's Research Team
Sham Gad commented on Whole Foods Market in a recent post on RealMoney.com. Here is what Gad had to say about the stock:
Not surprisingly, United Natural Foods' (UNFI) biggest customer isWhole Foods (WFM - Get Report), a relationship that has existed for years and is likely to remain. Whole Foods has no other distributor that can offer the depth of products that UNFI offers. UNFI's infrastructure can't be replicated quickly. With an enterprise value of $3 billion, a player such as Sysco would find it far more attractive to pay a premium and acquire UNFI than try to duplicate the company's existing infrastructure, which consists of 33 distribution centers, 7.8 million square feet of warehouse space, and a state-of-the-art supply chain and logistics system.
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Separately, 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