We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What to Note Ahead of United Natural (UNFI) in Q3 Earnings
Read MoreHide Full Article
United Natural Foods, Inc. (UNFI - Free Report) is likely to register top-line growth when it releases third-quarter fiscal 2023 earnings on Jun 7. However, the bottom is likely to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $7,524 million, suggesting a rise of 3.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has declined 1.6% in the past 30 days to 63 cents per share, indicating a 42.7% decline from the figure reported in the prior-year quarter. The food company has a trailing four-quarter negative earnings surprise of 7.6% on average. UNFI reported a negative earnings surprise of 43.5% in the last reported quarter.
Things to Note
United Natural has been witnessing a challenging operating landscape due to inflation, supply-chain issues and changing consumer preferences. On its fiscal second-quarter earnings call, management predicted its profitability to remain challenged throughout the year as it continued to lap periods of considerable procurement gains. The persistence of such hurdles might have been a headwind in the quarter to be reported.
Also, rising sales and operating expenses have been a concern for the company over time. For instance, in second-quarter fiscal 2023, its operating expenses increased 5.8% year over year, while the metric jumped 6.7% in the first six months of fiscal 2023. Also, the impacts of changes in labor and raw material costs might have harmed its margin and profitability in the to-be-reported quarter.
Given its extensive regional presence, United Natural’s operations are subject to global economic and political risks, as well as forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the fiscal third quarter.
However, the company is benefiting from its e-commerce strength thanks to the increased digital solutions it offers. The company is focused on rolling out additional marketing and analytics capabilities to improve customers’ brand experiences. These upsides are likely to have contributed to the company’s quarterly performance.
United Natural has also been benefiting from its Fuel the Future strategy, unveiled in June 2021. Management’s focus on increasing the market share via network optimization, solid innovation and a better customer experience are likely to have been tailwinds.
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.
United Natural currently carries a Zacks Rank #5 (Strong Sell).
UNFI has an Earnings ESP of 0.00%. 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 three 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 their upcoming releases:
Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.38%. The company is likely to register top- and bottom-line increases when it reports its upcoming quarter results. The consensus mark for KHC’s quarterly revenues is pegged at $6.84 billion, which suggests growth of 4.3% from the figure reported in the prior-year quarter.
KHC currently sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kraft Heinz’s earnings per share has moved from 74 cents to 75 cents in the past 30 days.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.92% and a Zacks Rank #3. The company is likely to register growth in its top and bottom lines when it reports its upcoming quarter numbers. The consensus mark for its quarterly earnings has moved down 0.5% in the past 30 days to $1.90 per share.
The Zacks Consensus Estimate for HSY's quarterly revenues is pegged at $2.5 billion, which suggests an increase of 6.8% from the figure reported in the prior-year quarter.
Archer Daniels Midland Company (ADM - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank #3. The company is likely to register top- and bottom-line declines when it reports its upcoming quarterly results. The consensus mark for ADM’s quarterly revenues is pegged at $24.9 billion, which suggests an 8.9% fall from the figure reported in the prior-year quarter.
The consensus mark for ADM’s quarterly earnings has declined in the past 30 days to $1.54 cents per share. The consensus estimate suggests a decline of 28.4% from the year-ago quarter.
Image: Bigstock
What to Note Ahead of United Natural (UNFI) in Q3 Earnings
United Natural Foods, Inc. (UNFI - Free Report) is likely to register top-line growth when it releases third-quarter fiscal 2023 earnings on Jun 7. However, the bottom is likely to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $7,524 million, suggesting a rise of 3.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has declined 1.6% in the past 30 days to 63 cents per share, indicating a 42.7% decline from the figure reported in the prior-year quarter. The food company has a trailing four-quarter negative earnings surprise of 7.6% on average. UNFI reported a negative earnings surprise of 43.5% in the last reported quarter.
Things to Note
United Natural has been witnessing a challenging operating landscape due to inflation, supply-chain issues and changing consumer preferences. On its fiscal second-quarter earnings call, management predicted its profitability to remain challenged throughout the year as it continued to lap periods of considerable procurement gains. The persistence of such hurdles might have been a headwind in the quarter to be reported.
Also, rising sales and operating expenses have been a concern for the company over time. For instance, in second-quarter fiscal 2023, its operating expenses increased 5.8% year over year, while the metric jumped 6.7% in the first six months of fiscal 2023. Also, the impacts of changes in labor and raw material costs might have harmed its margin and profitability in the to-be-reported quarter.
Given its extensive regional presence, United Natural’s operations are subject to global economic and political risks, as well as forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the fiscal third quarter.
However, the company is benefiting from its e-commerce strength thanks to the increased digital solutions it offers. The company is focused on rolling out additional marketing and analytics capabilities to improve customers’ brand experiences. These upsides are likely to have contributed to the company’s quarterly performance.
United Natural has also been benefiting from its Fuel the Future strategy, unveiled in June 2021. Management’s focus on increasing the market share via network optimization, solid innovation and a better customer experience are likely to have been tailwinds.
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.
United Natural currently carries a Zacks Rank #5 (Strong Sell).
United Natural Foods, Inc. Price and EPS Surprise
United Natural Foods, Inc. price-eps-surprise | United Natural Foods, Inc. Quote
UNFI has an Earnings ESP of 0.00%. 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 three 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 their upcoming releases:
Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +0.38%. The company is likely to register top- and bottom-line increases when it reports its upcoming quarter results. The consensus mark for KHC’s quarterly revenues is pegged at $6.84 billion, which suggests growth of 4.3% from the figure reported in the prior-year quarter.
KHC currently sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kraft Heinz’s earnings per share has moved from 74 cents to 75 cents in the past 30 days.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.92% and a Zacks Rank #3. The company is likely to register growth in its top and bottom lines when it reports its upcoming quarter numbers. The consensus mark for its quarterly earnings has moved down 0.5% in the past 30 days to $1.90 per share.
The Zacks Consensus Estimate for HSY's quarterly revenues is pegged at $2.5 billion, which suggests an increase of 6.8% from the figure reported in the prior-year quarter.
Archer Daniels Midland Company (ADM - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank #3. The company is likely to register top- and bottom-line declines when it reports its upcoming quarterly results. The consensus mark for ADM’s quarterly revenues is pegged at $24.9 billion, which suggests an 8.9% fall from the figure reported in the prior-year quarter.
The consensus mark for ADM’s quarterly earnings has declined in the past 30 days to $1.54 cents per share. The consensus estimate suggests a decline of 28.4% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.