share_log

What's Going On With Grocery Wholesaler United Natural Foods Stock Wednesday?

Benzinga ·  Jun 5 21:49

Grocery wholesaler United Natural Foods Inc (NYSE:UNFI) shares are ticking higher after the third-quarter FY24 earnings and outlook update.

The company reported a third-quarter FY24 sales decline of 0.1% year-on-year to $7.498 billion, missing the analyst consensus estimate of $7.515 billion.

Gross margin for the quarter was 13.6% versus 13.3% last year. The gross profit climbed 2% to $1 billion.

Operating income for the quarter was $6 million compared to $33 million last year. Adjusted EBITDA of $130 million decreased 18.2% Y/Y. Adjusted EPS of $0.10 beat the consensus estimate of $0.03.

"We delivered another quarter in-line with our fiscal 2024 plan and our third consecutive quarter of improving profitability driven by continued progress on near-term operational and efficiency initiatives," said Sandy Douglas, UNFI's Chief Executive Officer.

The company held $39 million in cash and equivalents as of April 27. Free cash flow for the quarter totaled $49 million, and the operating cash flow nine months was $54 million.

Total outstanding debt, net of cash, was $2.13 billion at the end of the third quarter.

"We expect our updated strategy to generate free cash flow approaching $100 million in fiscal 2025 and stable and dependable profit and cash flow growth, with improving returns on capital and declining net leverage on a multi-year basis," added Douglas.

Outlook: United Natural Foods continues to see FY24 sales of $30.5 billion-$31 billion, against the consensus of $30.78 billion.

UNFI updated FY24 adjusted EPS guidance from $(0.56)-$0.06 to $(0.20)-$0.20 versus the consensus of $(0.06).

Price Action: UNFI shares are trading higher by 12.4% at $13.64 at the last check Wednesday.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment