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What's in the Offing for United Natural (UNFI) in Q2 Earnings?

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United Natural Foods, Inc. (UNFI - Free Report) is likely to witness a year-over-year increase in the top line when it reports second-quarter fiscal 2022 earnings on Mar 9. The Zacks Consensus Estimate for revenues is pegged at $7,186 million, suggesting a rise of 4.3% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at $1.10 per share, indicating a decline of 12% from the figure reported in the prior-year period. United Natural, which distributes natural, organic, specialty, produce, and conventional grocery and non-food products, has a trailing four-quarter earnings surprise of 35.4%, on average. UNFI delivered an earnings surprise of around 59% in the last reported quarter.

United Natural Foods, Inc. Price, Consensus and EPS Surprise

United Natural Foods, Inc. Price, Consensus and EPS Surprise

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

Key Factors to Consider

Accelerating inflation and gains from existing and new customers, including the benefits from cross-selling, have been working well for the company. On its last earnings call, management stated that it expects inflation to stay for at least the next several months. The company has also been benefiting from e-commerce strength for a while now. Also, the company’s customer-focused and growth-oriented Fuel the Future strategy bodes well. Apart from this, management has been undertaking buyouts to expand its presence. These upsides are likely to have aided the performance in the quarter to be reported.

That said, United Natural like many other food companies has been encountering challenges in the labor market. It is also expected to have seen continued supply-chain hurdles in the quarter under review.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for United Natural this time. 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, which is not the case here.

United Natural currently has a Zacks Rank #3 and an Earnings ESP of -4.26%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With the Favorable Combination

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 in the to-be-reported quarter.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +5.19% and a Zacks Rank #2. It is anticipated to register a top-line increase when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for Casey's General Stores’ revenues is pegged at $3.1 billion, indicating a rise of 52.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Casey's General Stores’ quarterly earnings is pegged at $1.45 per share, suggesting an improvement of 39.4% from the year-ago quarter’s reported figure. CASY delivered an earnings beat of 20.1%, on average, in the trailing four quarters.

Dollar General (DG - Free Report) currently has an Earnings ESP of +0.68% and a Zacks Rank of 3. It is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $2.56 suggests a fall of 2.3% from the year-ago quarter’s reported figure.

Dollar General’s top line is expected to rise from the year-earlier quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.7 billion, which indicates an improvement of 3.3% from the figure reported in the prior-year quarter. DG has a trailing four-quarter earnings surprise of 8.8%, on average.

DICK'S Sporting Goods (DKS - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly EPS of $3.54 suggests growth of 45.7% from the year-ago quarter’s reported figure.

DICK'S Sporting Goods’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $3.3 billion, indicating an increase of 5.8% from the year-ago quarter. DKS has a trailing four-quarter earnings surprise of 104.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.