Shares of Sprouts Farmers Market (SFM) plummeted 24.52% in 24-hour trading on Thursday, as investors reacted negatively to the company's disappointing fourth-quarter guidance, overshadowing its better-than-expected third-quarter earnings. The organic grocery chain's stock took a significant hit after releasing its financial results and outlook, which fell short of analyst projections in key areas.

For the third quarter, Sprouts reported earnings per share of $1.22, surpassing the analyst consensus estimate of $1.17. However, the company's quarterly sales of $2.200 billion missed expectations of $2.225 billion. While Sprouts saw a 13.07% increase in sales compared to the same period last year, the market focused on the weaker-than-anticipated guidance for the upcoming quarter and full year.

The primary catalyst for the stock's sharp decline was Sprouts' lackluster outlook for the fourth quarter and full year 2025. The company expects Q4 earnings per share in the range of $0.86 to $0.90, significantly below the FactSet estimate of $0.98. Additionally, Sprouts forecasts Q4 comparable store sales growth of just 0% to 2%, a substantial deceleration from the 5.9% growth achieved in Q3. For the full year 2025, the company now anticipates earnings per share between $5.24 and $5.28, also falling short of analysts' expectations of $5.31. These projections suggest that Sprouts may face challenges in maintaining its growth momentum in an increasingly competitive grocery retail environment.