Why Whole Foods Market (WFM) Stock is Down Today

NEW YORK (TheStreet) -- Shares of Whole Foods Market  (WFM) are slipping -4.88% to $37.20 in pre-market trading after posting weak second quarter earnings that missed sales expectations and a fiscal 2014 outlook below Wall Street expectations.

For the organic grocer's fiscal third quarter, the company reported a 3.9% increase in sales, less than the 4.8% that analysts expected. 

The company reported fiscal third quarter earnings of 41 cents per share, up from 38 cents a share one year ago, and beating the consensus estimate of 39 cents a share.

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Revenue for the quarter was $3.38 billion, up from $3.06 billion in the same quarter of 2013, but missing analyst expectations of $3.39 billion.

In its fiscal 2014 outlook, the retailer said it expects sales growth of between 9.6% and 9.9%, lower than the consensus estimate of 11% growth in revenue.

Whole Foods was downgraded to "neutral" from "overweight" with a price target of $38 from $48 at JPMorgan Chase  (JPM) this morning, due to limited visibility and reduced estimates following the company's earnings results.
WFM ChartWFM data by YCharts

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