”I think the valuation is a little full and the report was somewhat disappointing,” says Joe Terranova.
”But they usually beat,” counters an enthusiastic Brian Kelly. “The market had a lot of expectations built in.”
Those were the immediate reactions from two of the Fast Money traders as they considered the the 4% decline in Whole Foods during extended trade, and how to trade the move.
The sell-off was triggered by earnings that met Street expectations but nothing more. Also Whole Foods said a key sales gauge rose less than analysts had expected
”But they also said the $50 and up basket is starting to increase and overall sales increased,” counters Kelly. Total sales rose more than 12 percent to $2.4 billion.
”I think they’re executing. Around $67, I think it’s worth a shot,” Kelly says.
By the numbers the grocery store chain posted net income of $75.5 million, or 42 cents per share, for the fiscal fourth quarter ended Sept. 25.
Analysts, on average, were looking for a profit of 42 cents per share for the latest quarter, according to Thomson Reuters I/B/E/S.
Closely watched same store sales, which excludes relocations, expansion and stores open less than a year increased 8.4 percent -- short of the 9.1 percent gain analysts had expected.
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Trader disclosure: On Nov 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour is long BAC; Seymour is long INTC; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; Terranova is long IBM; Terranova is long AAPL; Terranova is long CF; Terranova is long AKAM; Terranova is long CNQ; Terranova is long AXP; Terranova is long MUB; Finerman owns AAPL; Finerman owns BAC; Finerman owns MSFT; Finerman owns GOOG; Finerman’s firm owns AAPL short calls; Finerman’s firm owns JPM; Finerman’s firm owns YHOO short calls; Finerman’s firm owns IBM short calls; Finerman’s firm owns MSFT; J. Najarian is long DB; J. Najarian is long CBOE; J. Najarian is long CME; J. Najarian is long CIGX; J. Najarian is long MDR; J. Najarian is long MSFT; J. Najarian is long AKAM call spreads; Stutland is short AAPL puts; Stutland is long MSFT corporate bonds; Stutland is short goog put spread; Stutland is short gld puts and long call spread; Stutland is short TLT puts; Stutland is long stock and short calls INTC; Stutland is long corporate Banking sector bonds
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