Key Takeaways UNFI is expected to post 4.6% higher revenues and EPS of $0.24, up from $0.10 a year ago. Growth is driven by wholesale strength, automation and rising demand for organic products. Lean management and cost control continue to support operational efficiency and savings.United Natural Foods, Inc. (UNFI) is likely to register growth in its top and bottom lines when it reports third-quarter fiscal 2025 earnings on June 10.The Zacks Consensus Estimate for revenues is pegged at $7.85 billion, impl ...

Group 1 - United Natural Foods (NYSE: UNFI) recently exceeded earnings estimates and raised its guidance, although this was reported back in March [1] - The impact of tariffs on the company's performance has not yet been fully accounted for, and the stock price remains above pre-tariff levels [1] Group 2 - The analyst has over 10 years of experience researching various companies across multiple sectors, including commodities and technology [1] - The focus of the analyst's research includes metals and mining stocks, as well as consumer discretionary/staples, REITs, and utilities [1]

Group 1: Company Performance - United Natural Foods (UNFI) shares increased by 7.6% to close at $30.57, with notable trading volume compared to typical sessions, and a total gain of 17.3% over the past four weeks [1][2] - The stock's rise is driven by optimism regarding its wholesale segment, new business from existing and newly acquired customers, and the impact of inflation, alongside a focus on lean management and operational efficiency [2] - The company is expected to report quarterly earnings of $0.23 per share, reflecting a year-over-year increase of 130%, with revenues projected at $7.82 billion, up 4.2% from the previous year [3] Group 2: Earnings Estimates and Market Position - The consensus EPS estimate for UNFI has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - UNFI currently holds a Zacks Rank of 3 (Hold), while another company in the same industry, Campbell's (CPB), has a Zacks Rank of 4 (Sell) and reported a 1.9% increase in its last trading session [4][5] - Campbell's EPS estimate for the upcoming report is $0.65, which is a decrease of 13.3% from the previous year [5]

Core Viewpoint - United Natural Foods, Inc. (UNFI) has experienced an 18.2% increase in stock price over the past month, outperforming the industry and the S&P 500 index, leading investors to consider whether to hold or take profits [1]. Stock Performance - UNFI closed at $28.41, trading above its 50-day and 200-day simple moving averages of $26.26 and $23.40, indicating strong momentum and positive investor sentiment [2][3]. Growth and Efficiency - The natural and organic segment of UNFI is showing impressive growth due to increased consumer demand for healthier products, aligning with broader trends favoring "better-for-you" options [4]. - UNFI is optimizing its distribution network to enhance efficiency, including consolidating its distribution center in Fort Wayne, IN, which is expected to improve operational efficiency and financial flexibility [7]. - Lean management practices have led to a reduction in operating expenses to 12.6% of net sales from 13% year-over-year, reflecting disciplined execution [8]. Financial Performance - In the fiscal second quarter, adjusted EBITDA increased by approximately 13.3% year-over-year to around $145 million, while adjusted earnings per share surged 214.3% to 22 cents from 7 cents in the prior-year quarter [9]. - However, UNFI's gross margin narrowed to 13.1% from 13.3% year-over-year, primarily due to a weaker wholesale margin rate [11]. Challenges - UNFI's retail segment faced a 3.3% decline in total retail sales year-over-year, attributed to the closure of five stores, with same-store sales falling by approximately 40 basis points [10]. - Ongoing margin pressures and rising operational costs may limit the company's ability to invest in growth initiatives [12]. Valuation - UNFI is trading at a forward 12-month price-to-earnings multiple of 22.31X, which is above the industry average of 15.75X, suggesting potential overvaluation [13]. Investment Considerations - The recent stock rally reflects investor confidence due to operational execution and efficiency gains, but challenges in retail and high valuation indicate that current investors may benefit from holding, while new investors might wait for stabilization [15].

A month has gone by since the last earnings report for United Natural Foods (UNFI) . Shares have lost about 8.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is United Natural due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then ...

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]

Group 1 - The stock of United Natural Foods (UNFI) has experienced a downtrend, declining 8.6% over the past four weeks, but is now in oversold territory, indicating a potential for a turnaround [1] - The Relative Strength Index (RSI) for UNFI is at 29.96, suggesting that the heavy selling pressure may be exhausting, which could lead to a reversal in the stock's trend [5] - Analysts have raised earnings estimates for UNFI by 8.7% over the last 30 days, indicating a strong consensus that the company may report better earnings than previously predicted [7] Group 2 - UNFI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

The past couple of days have been very interesting for shareholders of food distribution firm United Natural Foods (NYSE: UNFI ). On March 12th, shares of the company spiked 11.6% after management announced financial results forCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow ...

Financial Performance - Net sales for the second quarter of fiscal 2025 increased by 4.9% to $8,158 million compared to $7,775 million in the second quarter of fiscal 2024[132]. - Gross profit for the second quarter of fiscal 2025 increased by $37 million, or 3.6%, to $1,072 million, with a gross profit margin of 13.1%[137]. - Operating expenses for the second quarter of fiscal 2025 increased by $21 million, or 2.1%, to $1,031 million, representing 12.6% of net sales[139]. - Adjusted EBITDA for the second quarter of fiscal 2025 was $145 million, up from $128 million in the second quarter of fiscal 2024, reflecting a $17 million increase[130]. - Net loss attributable to United Natural Foods, Inc. was $3 million for the second quarter of fiscal 2025, compared to a net loss of $15 million in the second quarter of fiscal 2024[130]. - Year-to-date net sales for fiscal 2025 increased by 4.6% to $16,029 million compared to $15,327 million for fiscal 2024[135]. - Gross profit for fiscal 2025 year-to-date increased by $45 million, or 2.2%, to $2,110 million, with a gross profit margin of 13.2%[138]. - Operating income for fiscal 2025 year-to-date increased to $32 million, compared to $0 million for fiscal 2024 year-to-date[146]. - Total net sales for Q2 fiscal 2025 increased by $383 million, reaching $8,158 million, compared to $7,775 million in Q2 fiscal 2024[154]. - Wholesale net sales increased by $385 million, or 5.1%, in Q2 fiscal 2025, driven by a 3% increase in unit volumes[155]. - Adjusted EBITDA for wholesale increased by $18 million, or 15.3%, in Q2 fiscal 2025, reaching $136 million, compared to $118 million in Q2 fiscal 2024[159]. Cost and Expenses - The company reported a product cost inflation of approximately 2% in Q2 of fiscal 2025 compared to Q2 of fiscal 2024[115]. - Restructuring, acquisition, and integration related expenses increased to $9 million in the second quarter of fiscal 2025 from $4 million in the second quarter of fiscal 2024[141]. - Interest expense, net, decreased to $38 million in the second quarter of fiscal 2025 from $40 million in the second quarter of fiscal 2024, primarily due to lower outstanding debt balances[147]. - The effective tax rate for Q2 fiscal 2025 was a benefit rate of 60.0% on pre-tax loss, compared to 26.3% in Q2 fiscal 2024[149]. Distribution and Operations - A new distribution center in Manchester, Pennsylvania, with approximately 1.3 million square feet, began operations in Q1 of fiscal 2025 and will be automated later in the fiscal year[111]. - The company has 53 distribution centers and warehouses totaling approximately 31 million square feet of warehouse space across North America[102]. - The company is optimizing its distribution center network to achieve cost savings and improve customer experience[110]. - The company is realigning its commercial wholesale organization into two product-centered divisions to enhance service to customers and suppliers[104]. - The company recognized a $118 million right-of-use asset and operating lease liability for a new distribution center in Sarasota, Florida, in Q1 of fiscal 2025[111]. Cash Flow and Liquidity - Total liquidity as of February 1, 2025, was $1,312 million, consisting of $1,268 million in unused credit and $44 million in cash[164]. - Net cash provided by operating activities increased by $208 million in fiscal 2025 year-to-date compared to fiscal 2024 year-to-date, reaching $137 million[175]. - Net cash used in investing activities decreased by $42 million in fiscal 2025 year-to-date, totaling $100 million, primarily due to lower capital expenditures[176]. - Net cash used in financing activities increased by $242 million in fiscal 2025 year-to-date, resulting in a net cash outflow of $32 million, attributed to increased repayments under the ABL Credit Facility[177]. - Cash and cash equivalents at the end of the period increased by $10 million, totaling $44 million, compared to $34 million at the end of the previous period[175]. - Total debt decreased by $14 million to $2,071 million as of February 1, 2025, from $2,085 million as of August 3, 2024[164]. Capital Expenditures and Investments - Capital expenditures for fiscal 2025 year-to-date were $103 million, a decrease of $38 million from $141 million in fiscal 2024 year-to-date[173]. - Fiscal 2025 capital and cloud implementation spending is expected to be approximately $300 million, focusing on distribution network automation and technology platform investments[174]. Shareholder Returns and Pension Contributions - As of February 1, 2025, the company had $138 million remaining authorized under the $200 million share repurchase program initiated in September 2022[185]. - The company did not repurchase any shares of common stock in fiscal 2025 year-to-date[185]. - The company expects to contribute approximately $51 million to multiemployer pension plans in fiscal 2025, an increase from $47 million in fiscal 2024[182]. - The company assesses the attractiveness of cash contributions to pension plans based on factors such as expected return on assets and cost of debt[180]. - The company anticipates that contributions to multiemployer pension plans could increase in the near term due to various factors, including collective bargaining outcomes[182]. Retail Performance - Retail's net sales decreased by $21 million, or 3.3%, in Q2 fiscal 2025, primarily due to a 0.4% decrease in identical store sales[156]. Economic Outlook - The company anticipates continued economic volatility impacting consumer confidence and spending behavior[108]. Operational Strategy - The company plans to continue investing in its Retail segment, focusing on customer-facing merchandising initiatives and technology improvements[114]. - Overall product sales are balanced throughout the year, with working capital needs peaking during high sales periods, such as the holiday season[188].

United Natural Foods, Inc. (NYSE:UNFI) Q2 2025 Earnings Conference Call March 11, 2025 8:30 AM ET Company Participants Steve Bloomquist - VP of IR Sandy Douglas - CEO Matteo Tarditi - President and CFO Conference Call Participants John Heinbockel - Guggenheim Bill Kirk - ROTH Capital Scott Mushkin - R5 Capital Mark Carden - UBS Andrew Wolf - CL King Kelly Bania - BMO Capital Markets Operator Thank you for standing by. My name is Karen, and I will be your conference operator today. At this time, I would like ...