United Natural Foods delivered a stronger-than-expected fourth-quarter earnings report, showcasing solid performance and a surprise profit, significantly boosting its stock. As of 1:42 p.m. ET, the stock experienced a 22.1% increase.
United Natural Foods, the nation’s leading wholesaler of organic and natural foods, reported a 10% rise in revenue to $8.16 billion, surpassing the consensus estimate of $7.94 billion. This increase was partly attributable to an extra week in the accounting period. On a comparable 13-week basis, net sales rose by 2.1%.
Management attributed the positive results to improving market trends, new business with existing customers, and efficiency initiatives. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 53.8% to $143 million, including a $10 million benefit from the additional week.
Bottom-line results showed marked improvement, with adjusted earnings per share transitioning from a loss of $0.25 in the same quarter the previous year to a profit of $0.01, outperforming expectations of a $0.10 loss per share.
Chief Financial Officer Matteo Tarditi remarked on the promising results, stating that they culminated a year of sequentially increasing profitability, significantly reinforcing the company’s foundation and building momentum as it enters fiscal 2025.
Looking ahead, United Natural Foods anticipates revenue in the range of $30.3 billion to $30.8 billion, slightly below the consensus estimate of $30.89 billion when adjusted for the extra week. For the bottom line, the company projects adjusted EPS of $0.20 to $0.80, compared to the consensus of $0.57.
Despite not entirely meeting revenue expectations, the company’s direction and improving profitability earned favor among investors, reflected in the surge of its stock price.
