United Natural Foods
The 10-second takeaway
For the quarter ended April 28 (Q3), United Natural Foods beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins grew, and net margins increased.
United Natural Foods notched revenue of $1.39 billion. The 14 analysts polled by S&P Capital IQ looked for revenue of $1.35 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.20 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. GAAP EPS of $0.59 for Q3 were 23% higher than the prior-year quarter's $0.48 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 17.6%, 60 basis points worse than the prior-year quarter. Operating margin was 3.5%, 30 basis points better than the prior-year quarter. Net margin was 2.1%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $5.18 billion. The average EPS estimate is $1.92.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 250 members rating the stock outperform and 39 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give United Natural Foods a green thumbs-up, and eight 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 $48.08.
While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business, and reaping outsized rewards. Is United Natural Foods the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.
- Add United Natural Foods to My Watchlist.
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.