Home / Business and Economy / UNFI Stock Soars on Adjusted Profits
UNFI Stock Soars on Adjusted Profits
4 Dec
Summary
- United Natural Foods reported strong adjusted earnings per share.
- Actual GAAP earnings showed a loss, with sales declining.
- Company forecasts full-year sales below analyst estimates.
United Natural Foods (UNFI) saw its stock surge this morning following a powerful fiscal Q1 2026 earnings report. The natural foods distributor surpassed analyst predictions for adjusted earnings per share, achieving $0.56 against a forecast of $0.40, even with slightly lower sales of $7.8 billion. However, the company's reported GAAP earnings were a loss of $0.06 per share, with overall sales experiencing a 0.4% decrease.
Despite these mixed results, CEO Sandy Douglas highlighted "solid execution and continued progress," noting a nearly 25% growth in adjusted EBITDA and an improvement in free cash flow compared to the previous year. The company also provided full-year guidance, projecting sales between $31.6 billion and $32 billion and adjusted earnings per share ranging from $1.50 to $2.30, figures that remain below current analyst estimates.
Investor sentiment appears optimistic, as evidenced by the stock's significant jump. Yet, even at the higher end of its earnings forecast, United Natural Foods stock would carry a price-to-earnings ratio exceeding 47. This valuation prompts consideration, especially for a company in the grocery sector.
