Story updated at 9:50 a.m. to reflect market activity.
Shares of Whole Foods fell 0.4% to $39.00 in morning trading.
The firm lowered its EPS estimates for the grocery store operator for 2015. Sterne Agee analysts now estimate Whole Foods will report earnings of 32 cents for the fourth quarter of 2014, and $1.54 a share for full year 2014. For full-year 2015 the analyst firm expects earnings of $1.65 a share, down from previous estimates of $1.76 a share for the year.
Analyst Charles Grom wrote, "While we've been long-term fans of CEO Walter Robb and the team down in Austin, we struggle with: (1) what the appropriate multiple for the stock is in light of slowing sales and future GPM uncertainty and (2) a tricky NT set-up as both Street numbers and WFM's LT strategic vision are too optimistic."
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 a number of 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, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."