United Natural Foods, Inc. ( UNFI Quick Quote 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. 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 Quick Quote 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 Quick Quote CPB - Free Report) currently has an Earnings ESP of +2.05% and carries a Zacks Rank #3. General Mills, Inc. ( GIS Quick Quote GIS - Free Report) currently has an Earnings ESP of +2.06% and carries a Zacks Rank #3. 5 Stocks Set to Double
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