Natural Grocers (NGVC) In-Line EPS Driven by Gross Margin; Wedbush Remains Neutral

Wedbush reiterated a Neutral rating on Natural Grocers (NYSE: NGVC), and cut the price target to $22.00 (from $24.00), following the company's 4Q earnings report. NGVC reported EPS of $0.13, vs. $0.13 consensus, helped by slightly better-than-expected gross margin, but offset by higher operating expenses. The company updated its partial FY16 guidance offered in 3Q and now expects to comp store sales of 5-7%, an EBITDA margin of 7.8-8.0% and EPS of $0.79-0.83.

Analyst Phil Terpolilli commented, "NGVC reported better top-line results and comps but EPS in-line. NGVC reported 4Q EPS of $0.13 (vs. $0.13 Wedbush, $0.13 consensus) helped by slightly better-than-expected gross margin (better product margins across departments was partially offset by higher occupancy costs) but offset by higher operating expenses (higher salary-related and depreciation costs). Comparable store sales growth of 6.2% beat our 5.3% estimate and Street Account consensus expectations for 5.7%, and was comprised of 4.5% growth in traffic and 1.6% growth in basket size. This brings NGVC’s comp to 9.9% on a 2-year stacked basis compared to 8.9% reported last quarter."

For an analyst ratings summary and ratings history on Natural Grocers click here. For more ratings news on Natural Grocers click here.

Shares of Natural Grocers closed at $21.12 yesterday.

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