United Natural Foods
The 10-second takeaway
For the quarter ended Jan. 28 (Q2), United Natural Foods beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins expanded, net margins were steady.
United Natural Foods tallied revenue of $1.29 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $1.26 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.44. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS of $0.45 for Q2 were 15% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.3%, 50 basis points worse than the prior-year quarter. Operating margin was 2.9%, 10 basis points better than the prior-year quarter. Net margin was 1.7%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $5.12 billion. The average EPS estimate is $1.91.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 246 members out of 283 rating the stock outperform, and 37 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give United Natural Foods a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Natural Foods is outperform, with an average price target of $44.44.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy