United Natural Foods(UNFI) ZACKS·2025-01-09 17:30Core Viewpoint - United Natural Foods (UNFI) has shown strong performance in its first-quarter earnings for fiscal 2025, surpassing estimates and demonstrating year-over-year growth, driven by a strategic plan focused on operational efficiency and customer value [2][4]. Financial Performance - Adjusted earnings for the quarter were 16 cents per share, exceeding the Zacks Consensus Estimate of 1 cent, compared to an adjusted loss of 4 cents in the same period last year [3]. - Net sales increased by 4.2% year over year to $7,871 million, surpassing the Zacks Consensus Estimate of $7,619 million, supported by a 2% rise in wholesale unit volumes [4]. - Gross profit rose 0.8% year over year to $1,038 million, with a gross profit margin of 13.2%, down 40 basis points from the previous year [5]. Cost and Margin Analysis - Operating expenses were $1,015 million, down from $1,023 million in the prior year, representing 12.9% of sales compared to 13.5% previously, attributed to cost-saving initiatives [6]. - Adjusted EBITDA was $134 million, reflecting a 14.5% increase from $117 million in the year-ago quarter, marking the fifth consecutive quarter of growth [7]. Financial Health - Total liquidity stood at $1.17 billion as of November 2, 2024, with total outstanding debt reaching $2.23 billion, a $164 million increase from the previous quarter [8]. Guidance for Fiscal 2025 - The company anticipates net sales of $30.6-$31 billion for fiscal 2025, an increase from earlier expectations of $30.3-$30.8 billion [9]. - Adjusted EBITDA is projected to be $530-$580 million, with adjusted earnings expected between 40 cents and 80 cents, up from the previous range of 20 cents to 80 cents [10]. Market Sentiment - Despite recent positive performance, there has been a downward trend in estimates, with a consensus estimate shift of -5.79% [12]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [14].