Back to top

Image: Bigstock

Things to Note Before United Natural's (UNFI) Q3 Earnings

Read MoreHide Full Article

United Natural Foods, Inc. (UNFI - Free Report) is likely to witness decline in the bottom line when it reports third-quarter fiscal 2021 numbers on Jun 9. The Zacks Consensus Estimate for earnings has remained unchanged at 93 cents per share in the past 30 days. The projection indicates a decline of 33.6% from the prior-year quarter’s reported figure. This distributor of natural organic, specialty, produce as well as conventional grocery and non-food products has a trailing four-quarter earnings surprise of 13.6%, on average. In the last reported quarter, the company delivered an earnings surprise of 35.9%.

United Natural’s top line is likely to witness year-over-year growth in the quarter. The Zacks Consensus Estimate for revenues is pegged at $6.9 billion, suggesting a rise of 2.8% from the prior-year quarter’s reported figure.

United Natural Foods, Inc. Price and EPS Surprise

 

United Natural Foods, Inc. Price and EPS Surprise

United Natural Foods, Inc. price-eps-surprise | United Natural Foods, Inc. Quote

 

Things to Note

United Natural’s sales are benefiting from e-commerce strength, thanks to increased e-commerce solutions offered by the company. In its last earnings call, management highlighted that 70% of the company’s Independents channel and a greater proportion of Chains channel now provide e-commerce solutions to their customers. Moreover, the company is committed toward optimizing distribution networks, creating increased operating benefits to its Value Path initiative, curtailing the cost structure and making technology-related investments. Additionally, United Natural is benefiting from elevated at-home food consumption amid the coronavirus outbreak.

That being said, United Natural expects third-quarter fiscal 2021 sales, adjusted EBITDA and adjusted earnings per share to be year-over-year lower in the quarter under review, as the year-ago period gained from an unexpected surge in pandemic-induced demand. Also, softness in the company’s foodservice business due to social distancing trends amid the pandemic is a concern.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for United Natural this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

United Natural carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Signet Jewelers Limited (SIG - Free Report) currently has an Earnings ESP of +2.84% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +2.05% and carries a Zacks Rank #3.

General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +2.06% and carries a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Published in