United Natural Foods
The 10-second takeaway
For the quarter ended Jan. 26 (Q2), United Natural Foods met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share expanded.
Margins dropped across the board.
United Natural Foods notched revenue of $1.45 billion. The 13 analysts polled by S&P Capital IQ anticipated revenue of $1.45 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.29 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 $0.50. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. Non-GAAP EPS of $0.50 for Q2 were 14% higher than the prior-year quarter's $0.44 per share. GAAP EPS of $0.46 for Q2 were 2.2% higher than the prior-year quarter's $0.45 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 16.7%, 60 basis points worse than the prior-year quarter. Operating margin was 2.7%, 20 basis points worse than the prior-year quarter. Net margin was 1.6%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.56 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $6.00 billion. The average EPS estimate is $2.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 282 members out of 321 rating the stock outperform, and 39 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 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 $58.87.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.