The question facing analysts and investors in Whole Foods International Market (NASDAQ: WFMI) ahead of Whole Food's earnings release next week has got to be the effect of CEO John Mackey's recent "macho posturing" and the FTC anti-trust suit to block the merger with Wild Oats Markets (NASDAQ: OATS). Wild Oats doesn't feel that circumstances warrant anti-trust action, as there are plenty of markets for organic produce. Time will tell if the FTC agrees.
Whole Foods fell short of expectations in the previous two quarters, according to Thomson Financial, but the one-year EPS growth rate is 5.2%, better than the industry average. Wall Street is looking for EPS for the current quarter to be .33. The current consensus recommendation is to hold WFMI.
The share price has dropped from its 52-week high of 66.25 last October, to a 52-week low of 36.00 at close on Friday, in the midst of last week's market downturn. Overall, the price has trended downward this past quarter. In the meantime, investors and analysts will just have to hold their collective breaths and wait to see what next week brings to the market in general, and Tuesday's earnings release to Whole Foods specifically.
More Whole Foods coverage:
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Jon Ogg: Meet the next Whole Foods ... Kroger
Sarah Gilbert: Whole Foods acquisition of Wild Oats may be blocked by FTC: Monopolistic organics?
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