Whole Foods (WFM) Stock Plunging on Disappointing Key Metric

NEW YORK (TheStreet) -- Shares of Whole Foods Market (WFM) are tumbling, sharply down 9.7% to $42.92 in after-hours trading Wednesday, after the organic grocer released its fiscal second quarter earnings.

Whole Foods missed estimates on a key sales metric. Comparable store sales gained 3.6% in the quarter, but same-store sales were expected to jump 5.3%, according to CNBC.

For the quarter, the grocery chain earned 43 cents per share, in-line with the consensus estimate, and up from 38 cents per share it reported a year ago.

Revenue rose to $3.65 billion from $3.32 billion a year ago, but missed the consensus estimate of $3.705 billion for the quarter, according to analysts polled by Thomson Reuters.

Austin, TX-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.

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."

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