United Natural Foods Q1 sales dip 0.4%, marginally miss estimates

United Natural Foods

02/12/2025 12:10

Overview

United Natural Foods fiscal Q1 net sales decreased 0.4%, slightly missing analysts' expectations

However, adjusted EPS beats analysts' estimates

Adjusted EBITDA increased 24.6%, driven by efficiency initiatives

Outlook

Company affirms fiscal 2026 net sales outlook of $31.6 bln to $32.0 bln

Company expects fiscal 2026 adjusted EPS of $1.50 to $2.30

Company projects fiscal 2026 adjusted EBITDA between $630 mln and $700 mln

Result Drivers

SUPPLY CHAIN IMPROVEMENTS - Co attributes adjusted EBITDA growth to incremental benefits of lean daily management

NETWORK OPTIMIZATION - Co says network optimization and process improvements enhanced service levels and throughput

CUSTOMER MIX AND SUPPLIER PROGRAMS - Co cites positive impact of customer mix and supplier programs on gross profit rate

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Miss*
$7.84 bln
$7.91 bln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.56
$0.41 (7 Analysts)
Q1 EPS
-$0.06
Q1 Net Income
-$4 mln
Q1 Adjusted EBITDA
$167 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the food retail & distribution peer group is "buy."

Wall Street's median 12-month price target for United Natural Foods Inc is $40.00, about 14.1% above its December 1 closing price of $34.36

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBwNCwsLa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)