United Natural to Come Up With Q4 Earnings: What You Should Know

Core Insights - United Natural Foods, Inc. (UNFI) is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2025, with revenues estimated at $7.63 billion, reflecting a 6.5% decrease year-over-year [1] - The consensus estimate for fiscal 2025 revenues stands at $31.71 billion, indicating a 2.4% increase from the previous year [1] Revenue and Earnings Estimates - The bottom line consensus remains unchanged at a loss of 22 cents per share, compared to earnings of 1 cent in the same quarter last year [2] - For fiscal 2025, earnings are projected at 59 cents per share, up from 14 cents in the prior year [2] Impact of Cybersecurity Incident - A cybersecurity incident in June has significantly impacted UNFI, leading to IT system shutdowns and distribution disruptions, with expected net sales reductions of $350 million to $400 million and adjusted EBITDA declines of $40 million to $50 million [3] - The total estimated net loss from this incident is projected to be between $50 million and $60 million, including tax impacts [3] Financial Impacts from Strategic Changes - UNFI is also facing financial repercussions from terminating its relationship with Key Food and closing the Allentown distribution center, incurring a $53 million fee recognized in the fiscal fourth quarter [4] - These factors are anticipated to negatively affect both top and bottom lines in the upcoming earnings report [4] Operational Resilience and Growth - Despite short-term challenges, UNFI shows growth and operational resilience, driven by strong demand in the wholesale segment and consumer interest in natural and organic products [5] - Strategic initiatives such as expanding the customer base, optimizing the distribution network, and investing in automation have improved efficiency and market reach [5] - Lean management practices have enhanced execution, aligning supply with customer needs and driving cost savings [5] Earnings Prediction Model - Current models do not predict an earnings beat for UNFI, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [6]