United Natural Foods Earnings: UNFI Stock Falls 16% Despite Q3 Beats

United Natural Foods (NYSE:UNFI) earnings for the third quarter of fiscal 2020 have UNFI stock crashing hard on Wednesday. This is despite reporting revenue of $6.67 billion, which matches Wall Street’s estimate. The company also reported adjusted earnings per share (EPS) of $1.40, while analysts were expecting EPS of $1.14 for the quarter.

United Natural Foods Earnings: UNFI Stock Falls 20% Despite Q3 Beats

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Additionally, the company reported GAAP EPS of $1.60 during the period.

Now let’s see what else is worth mentioning from the most recent United Natural Foods earnings report.

  • Adjusted EPS was up 129.5% from 61 cents during Q3 2019.
  • Revenue for the quarter comes in 11.8% higher compared to $5.96 billion during the same time last year.
  • Operating income of $71.71 million is 2.9% better year-over-year than $69.68 million
  • United Natural Foods earnings also includes a net income of $88 million.
  • That is 54.4% higher than $57 million from the third quarter of 2019.

Steven L. Spinner, chairman and chief executive officer of United Natural Foods, said this about the UNFI stock earnings report:

“UNFI’s ability to successfully manage the strong increase in customer demand driven by the COVID-19 pandemic is a testament to the dedication of our associates, our strong industry position, and the critical role we play in the North American food supply chain. We expect elevated consumer demand for our wide variety of natural, conventional and fresh perimeter products, along with our ongoing synergy and integration initiatives, to result in a strong finish to the fiscal year.  I am so proud of our team of front line associates who continue to amaze us with their commitment to excellence.  Our first priority will continue to be their safety.”

The company originally withdrew its FY2020 guidance back on May 12 due to “the strength of its fiscal 2020 year-to-date financial performance.” However, the company has now updated its outlook to account for moving its Cub Foods and certain Shoppers Food warehouse stores “into continuing operations, consistent with how it expects to report its fourth quarter and full-year 2020 results. ”

That said, the FY2020 guidance calls for EPS between $2.30 and $2.50 on revenue between $26.4 billion and $26.6 billion. Meanwhile, Wall Street is calling for EPS of $2.16 on revenue of $25.16 billion.

UNFI stock was down 16% on Wednesday.

Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/06/united-natural-foods-earnings-unfi-stock-falls-16-despite-q3-beats/.

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