United Natural Foods: UNFI Stock Drops 1% Despite Q2 Earnings Beat

UNFI beat EPS estimates by a nickel

United Natural Foods (NYSE:UNFI) earnings for the fiscal second quarter of 2020 have UNFI stock heading lower on Wednesday. That’s thanks to its adjusted earnings per share (EPS) of 32 cents, which beats out Wall Street’s estimate of 27 cents. The food wholesale company’s revenue of $6.14 billion also matches analysts’ estimates.

United Natural Foods: UNFI Stock Drops 1% Despite Q2 Earnings Beat
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The following are some additional highlights from the most recent United Natural Foods earnings report.

  • Adjusted per-share earnings are down 27.27% from 44 cents during the same time last year.
  • Revenue for the quarter is sitting marginally lower than the $6.15 billion in the fiscal second quarter of 2019.
  • The United Natural Foods earnings report also includes a net loss of -$30.7 million.
  • That’s a 91.02% improvement over the company’s net loss of -$341.73 million from the same period of the year prior.

Steven L. Spinner, chairman and CEO of United Natural Foods, said the following about the UNFI stock earnings:

“Despite considerable industry headwinds, I’m encouraged by our underlying performance and the momentum that is building within our business.  Prior to charges associated with the three customer bankruptcies that impacted the quarter, we grew Adjusted EBITDA by low double digits, and we remain optimistic as we move into the second half of our fiscal year and confident in UNFI’s long-term growth prospects.”

The United Natural Foods earnings report also includes its guidance for fiscal 2020. This has it expecting adjusted EPS of 85 cents to $1.45 on revenue of $23.5 billion to $24.3 billion. Meanwhile, Wall Street’s estimates are for adjusted EPS of $1.30 on revenue of $24.13 billion.

UNFI stock was down 1.4% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/03/united-natural-foods-earnings-hit-unfi-stock/.

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