United Natural Foods(US:UNFI) ZACKSยท2024-09-26 16:35Core Viewpoint - United Natural Foods, Inc. (UNFI) is expected to show growth in both revenue and earnings for the fourth quarter of fiscal 2024, with revenues projected at $7.9 billion, a 6.2% increase year-over-year, and a fiscal 2024 revenue estimate of $30.7 billion, reflecting a 1.4% rise from the previous year [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for UNFI's fourth-quarter earnings is a loss of 8 cents per share, an improvement from a loss of 25 cents in the same quarter last year [2]. - For fiscal 2024, UNFI anticipates net sales between $30.5 billion and $31.0 billion, with adjusted EBITDA expected in the range of $490 million to $520 million [5]. Operational Improvements - UNFI is benefiting from enhanced supply chain processes and a significant reduction in shrink, which has positively impacted financial performance and operational efficiency [3]. - The company is experiencing lower inflation rates, indicating a reduction in economic pressures, with management expecting a gradual decline in inflation through the fiscal fourth quarter [3]. Strategic Initiatives - UNFI is undergoing a transformation journey aimed at improving margins and cash flow generation through strategic initiatives, including network optimization, reducing capital expenditures, optimizing cost structures, and decreasing net working capital [4]. Market Challenges - The company faces challenges as consumers are cutting back on spending and shifting towards discount stores, bulk purchases, or online shopping, which is putting pressure on profitability in the retail segment [6]. - The retail market is becoming increasingly price-sensitive, contributing to persistent top-line challenges for UNFI [6]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for UNFI, as it holds a Zacks Rank of 3 (Hold) and an Earnings ESP of 0.00% [7].