Categories Earnings, LATEST, Retail

Earnings: United Natural Foods stock tanks after Q4 results miss Street view

United Natural Foods likely to post weak Q4 earnings
Courtesy: United Natural Foods / Facebook post

United Natural Foods (NYSE: UNFI) reported a sharp fall in its fourth-quarter earnings, despite strong revenue growth. The bottom line also missed analysts’ expectations and the company’s stock lost about 16% during Tuesday’s extended trading session, immediately after the announcement.

Adjusted earnings declined to $0.44 per share in the July-quarter from $0.76 per share in the same period of last year. Analysts were looking for faster growth. Unadjusted profit dropped to $18.9 million or $0.36 per share from $32.8 million or $0.64 per share a year earlier. The bottom-line was negatively impacted by a sharp increase in operating expenses.

Also see: United Natural Foods Q3 profit rises 10%

“As we begin the new fiscal year, I see tremendous focus and enthusiasm across the organization as we execute our strategy.  This passion will be a tailwind as we drive to accelerate cross-selling efforts, realize new cost efficiencies, aggressively pay down debt and deliver results in the quarters to come,” said Steven Spinner, chief executive officer.

Sales Surge

Meanwhile, net sales more than doubled to $6.41 billion during the three-month period, aided by solid contributions from Supervalu which joined the United Natural fold last year. The top-line, meanwhile, fell short of expectations. Sales at the Supernatural segment advanced 19% and those at Independents grew by 27%, while Supermarkets sales quadrupled.

Outlook

For fiscal 2020, the management expects earnings to be in the range of $0.35 per share to $0.89 per share. Earnings, on an adjusted basis, are estimated to be in the $1.22-$1.76 per share range. The forecast for full-year net sales is between $23.5 billion and $24.3 billion.

Related: United Natural Q3 2019 Earnings Conference Call Transcript

The company’s stock has lost steadily since the beginning of the year and hit a multi-year low a few weeks ago. The stock closed Tuesday regular session sharply lower and continued to lose during the after-hours session.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top