Key Takeaways MKC's Q2 EPS of 69 cents beat estimates and matched the prior-year quarter. Organic sales rose 2% in Q2, driven by favorable volume and product mix. CCI-led cost savings helped grow adjusted operating income 10% despite gross margin pressures.McCormick & Company, Incorporated (MKC) reported second-quarter fiscal 2025 results, with the top line increasing year over year but missing the Zacks Consensus Estimate. The bottom line was flat year over year but surpassed the consensus mark.The adjus ...

Core Insights - United Natural Foods, Inc. (UNFI) reported strong third-quarter fiscal 2025 results, with revenues and earnings exceeding expectations and showing year-over-year growth [1][3] - The company has achieved seven consecutive quarters of sequential adjusted EBITDA growth, reflecting effective execution of its multi-year strategy [1][6] Financial Performance - Adjusted earnings per share for Q3 were 44 cents, surpassing the Zacks Consensus Estimate of 24 cents and up from 10 cents in the same quarter last year [3][7] - Net sales increased by 7.5% year over year to $8,059 million, exceeding the Zacks Consensus Estimate of $7,846 million, driven by a 4% rise in wholesale unit volumes and inflation effects [3][7] - Gross profit rose 6.1% year over year to $1,082 million, with a gross margin of 13.4%, a slight contraction from 13.6% in the previous year [5][6] Segment Performance - Revenue from the Natural segment grew 12% to $4,160 million, Conventional sales increased by 2.7% to $3,628 million, and Retail sales saw a 0.4% rise to $573 million [4] Cost and Margin Analysis - Operating expenses were $1,025 million, up from $992 million in the prior year, but as a percentage of sales, they decreased to 12.7% from 13.2% [6] - Adjusted EBITDA reached $157 million, marking a 20.8% increase from $130 million in the same quarter last year [6] Financial Health - Total liquidity stood at $1.49 billion as of May 3, 2025, including nearly $52 million in cash and approximately $1.44 billion in unused capacity under its asset-based lending facility [7] - Free cash flow for Q3 was $119 million, up from $49 million in the prior-year quarter [7] - Total outstanding debt, net of cash, was $1.93 billion, a decrease of $118 million from the previous quarter [8] Future Guidance - For fiscal 2025, UNFI anticipates net sales between $31.3 billion and $31.7 billion, with adjusted EBITDA expected to be between $550 million and $580 million [9][10] - The company projects a net loss of $55 million to $80 million for fiscal 2025, contrasting with earlier expectations of a net loss of $13 million and net earnings of $3 million [9]

Group 1 - ALTI Global Inc (ALTI) is a financial company providing merchant banking, corporate advisory, brokerage, and placement agency services. The Zacks Consensus Estimate for its current year earnings has been revised 81.4% downward over the last 60 days [1] - J & J Snack Foods (JJSF) is a manufacturer, marketer, and distributor of branded niche snack foods and frozen beverages for the food service and retail supermarket industries. The Zacks Consensus Estimate for its current year earnings has been revised 15.6% downward over the last 60 days [2] - Guess (GES) designs, markets, distributes, and licenses casual apparel and accessories for men, women, and children, reflecting American lifestyle and European fashion sensibilities. The Zacks Consensus Estimate for its current year earnings has been revised almost 12.5% downward over the last 60 days [3]

BJ’s Wholesale Club Holdings, Inc. (BJ) reported mixed results for the first quarter of fiscal 2025. While revenues came in below the Zacks Consensus Estimate, earnings exceeded expectations. Both figures improved year over year, supported by modest growth in comparable club sales.BJ’s First-Quarter InsightsBJ’s Wholesale Club reported adjusted earnings of $1.14 per share, which came ahead of the Zacks Consensus Estimate of 91 cents and increased from 85 cents reported in the year-ago period. (See the Zacks ...

Core Insights - Pilgrim's Pride Corporation (PPC) is currently trading at a forward 12-month price-to-earnings ratio of 9.84X, which is below the industry average of 12.55X and the S&P 500's average of 21.49X, indicating it may be undervalued [1] - The company reported first-quarter 2025 adjusted earnings of $1.31 per share, a significant increase from 77 cents in the prior-year quarter, reflecting strong operational performance [5] - PPC's shares have gained 2.3% over the past three months, contrasting with declines in both the industry and the S&P 500 index [4] Financial Performance - In the first quarter of 2025, PPC's cost of sales decreased to $3,908.1 million from $3,978 million in the prior-year quarter, leading to a gross profit increase to $554.9 million from $383.9 million [7] - The Zacks Consensus Estimate for PPC's earnings per share has seen upward revisions, with the current fiscal estimate rising by 13 cents to $5.41 and the next fiscal estimate increasing by 25 cents to $4.82 [11] Growth Strategy - PPC is well-positioned for growth due to strong consumer demand for chicken, strategic market positioning, and enhanced operational efficiencies [5] - The USDA projects a 1.7% year-over-year increase in U.S. chicken production for 2025, which, along with a 1.6% rise in overall protein availability, supports strong pricing for PPC's products [6] - The company introduced over 80 new products in the first quarter of 2025, with combined sales of the Just BARE and Pilgrim's brands surging more than 50% [8] Challenges - PPC faces challenges in its export business, with a decline in export volumes in the first quarter of 2025 due to trade uncertainties and domestic demand constraints [12] - Selling, general and administrative expenses (SG&A) increased to $133.8 million from $119.1 million in the prior-year quarter, primarily due to higher legal costs and elevated incentive compensation [13]

Target Corporation (TGT) reported first-quarter fiscal 2025 results, with the top and bottom lines missing the Zacks Consensus Estimate. TGT witnessed a sharp decline in comparable sales. Lower-than-expected results compelled the Minneapolis-based retailer to cut its full-year guidance, reflecting ongoing headwinds in consumer demand and operational pressures.Despite sales falling short of expectations, the quarter saw positive developments such as robust digital growth, a 36% jump in same-day delivery via ...

United Natural Foods, Inc.’s (UNFI) shares have gained 18.2% in the past month, outperforming the industry’s decline of 2.6% and the broader S&P 500 index’s growth of 8.9%. With United Natural Foods’ massive rise in the past month, investors now face a key decision: Should they hold on to the stock or book a profit?UNFI Stock's Past Month PerformanceImage Source: Zacks Investment ResearchClosing at $28.41 yesterday, UNFI is trading above the 50 and 200-day simple moving averages of $26.26 and $23.40, respec ...

Pilgrim’s Pride Corporation (PPC) reported first-quarter 2025 results, with both top and bottom lines increasing from the year-ago quarter. Also, the company’s earnings surpassed the Zacks Consensus Estimate. PPC benefited from its portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships.PPC’s Q1 Results in DetailPilgrim's Pride reported adjusted earnings of $1.31 per share, surpassing the Zacks Consensus Estimate of $1.26. Also, the figure increased from ...

Core Insights - Sprouts Farmers Market, Inc. (SFM) reported strong first-quarter 2025 results, with both top and bottom lines exceeding expectations and showing year-over-year growth [1][2] Financial Performance - Quarterly earnings were $1.81 per share, surpassing the Zacks Consensus Estimate of $1.54, and reflecting a 61.6% increase from $1.12 in the same period last year [2] - Net sales reached $2,236.4 million, exceeding the Zacks Consensus Estimate of $2,195 million, and representing an 18.7% year-over-year increase driven by new store sales and comparable store sales growth [2] - Comparable store sales increased by 11.7%, outperforming the estimate of 10.5%, while e-commerce sales grew by 28%, accounting for 15% of total sales [3] Margin Analysis - Gross profit rose by 22.7% year over year to $886.4 million, with gross margin expanding by 129 basis points to 39.6%, exceeding the expected 50 basis points expansion [4] - Operating income increased to $226.3 million from $148.3 million in the prior year, with operating margin expanding by 220 basis points to 10.1%, surpassing the anticipated 140 basis points expansion [5] Store Expansion - During the quarter, Sprouts Farmers opened three new stores, bringing the total to 443 stores across 24 states as of March 30, 2025, with plans to open at least 35 new stores in 2025 [6] Financial Health - The company ended the quarter with cash and cash equivalents of $285.7 million, long-term debt of approximately $6.9 million, and stockholders' equity of $1,288 million [7] - Cash generated from operations was $299.1 million, with capital expenditures of $49 million year to date through March 30, 2025 [7] Future Outlook - For the second quarter of 2025, Sprouts Farmers anticipates comparable store sales growth between 6.5% and 8.5%, with adjusted earnings projected between $1.19 and $1.23 per share compared to 94 cents in the prior year [9] - The company expects full-year net sales growth of 12% to 14% and comparable store sales growth of 5.5% to 7.5%, with adjusted earnings before interest and taxes projected between $640 million and $660 million for 2025 [10] - Full-year earnings are projected to be between $4.94 and $5.10 per share, indicating growth from $3.75 per share reported in 2024 [11]

Core Insights - Mondelez International, Inc. (MDLZ) reported first-quarter 2025 results with net revenues increasing year over year but missing the Zacks Consensus Estimate, while adjusted earnings per share (EPS) declined year over year but exceeded consensus expectations [1][2] Financial Performance - Adjusted EPS was 74 cents, down 18.3% on a constant-currency basis, beating the Zacks Consensus Estimate of 65 cents [2] - Net revenues rose 0.2% year over year to $9,313 million, missing the Zacks Consensus Estimate of $9,332 million, with growth attributed to the Evirth acquisition but offset by negative currency impacts [2] - Organic net revenues grew 3.1% year over year, driven by a 6.6 percentage point increase in pricing, partially offset by a 3.5 percentage point unfavorable volume/mix impact [3] Market Segment Performance - Revenues from emerging markets decreased 0.3% to $3,723 million but increased 3.9% on an organic basis, supported by a 7.6 percentage point increase in pricing [4] - Revenues from developed markets increased 0.6% to $5,590 million, with an organic rise of 2.6%, primarily due to strong pricing execution [5] - Region-wise, revenues in Latin America and North America declined 8.8% and 4.1%, respectively, while Asia, the Middle East & Africa, and Europe grew 3.4% and 5.4% [6] Profitability Metrics - Adjusted gross profit fell by $437 million on a constant-currency basis, with the adjusted gross profit margin contracting 580 basis points to 33.4% due to increased raw material and transportation costs [7] - Adjusted operating income declined by $308 million on a constant-currency basis, with the adjusted operating income margin contracting 370 basis points to 14.8% [8] Financial Health - The company ended the quarter with cash and cash equivalents of $1,561 million, long-term debt of $15,796 million, and total equity of $25,823 million [9] - Net cash from operating activities was $1,092 million for the three months ended March 31, 2025, with adjusted free cash flow of $815 million [9] - Mondelez returned $2.1 billion to shareholders through cash dividends and share repurchases in the first quarter of 2025 [10] Future Outlook - Mondelez projects organic net revenue growth of around 5% in 2025, with adjusted EPS expected to decline nearly 10% on a constant-currency basis due to unprecedented cocoa cost inflation [11] - The company anticipates that currency translation will not impact 2025 net revenue growth and adjusted EPS [11] - Mondelez's shares have risen 12.3% in the past three months, outperforming the industry's 2.5% decline [11]