Things to Know Before United Natural's (UNFI) Q4 Earnings
United Natural Foods, Inc. UNFI will likely register top-line growth when it releases fourth-quarter fiscal 2023 earnings on Sep 26. However, the bottom line is expected to decline year over year.
The Zacks Consensus Estimate for quarterly revenues is pegged at $7.4 billion, indicating a rise of 2.1% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 revenues is pegged at $30.3 billion, projecting growth of 4.7% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line has remained unchanged in the past 30 days at a loss of 47 cents per share, indicating a decline from earnings of $1.27 per share reported in the prior-year quarter. The consensus mark for fiscal 2023 earnings is pegged at $2.01 per share, indicating a fall from $4.83 reported in the year-ago period.
The leading distributor of natural, organic and specialty food has a trailing four-quarter negative earnings surprise of 14.3% on average. UNFI reported a negative earnings surprise of 14.3% in the last reported quarter.
United Natural Foods, Inc. Price and EPS Surprise
United Natural Foods, Inc. price-eps-surprise | United Natural Foods, Inc. Quote
Things To Note
United Natural has also been benefiting from its Fuel the Future strategy and gains from new businesses. Management’s focus on increasing the market share via network optimization, solid innovation and a better customer experience are likely to have been tailwinds. UNFI’s sales are benefiting from e-commerce strength, thanks to the increased digital solutions the company offers. The persistence of these trends might have been a tailwind in the quarter to be reported.
For fiscal 2023, United Natural anticipates net sales in the range of $30.1-$30.5 billion.
However, United Natural has been witnessing persistent cost inflation, supply-chain bottlenecks and operational complexities. The company expects to see drab profitability trends during fiscal 2023 as it continues to lap periods of considerable procurement gains.
For fiscal 2023, management expects adjusted EBITDA in the range of $610-$650 million, indicating a 24% decline at the midpoint of the guidance. United Natural expects fiscal 2023 adjusted earnings in the range of $1.80-$2.30 per share. At the midpoint, the view indicates a 57.6% slump from the fiscal 2022 reported level. We expect the company to register a 23.4% decline in adjusted EBITDA in fiscal 2023.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for United Natural this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
United Natural currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the right elements to beat on earnings this time.
Flowers Foods FLO currently has an Earnings ESP of +0.52% and carries a Zacks Rank #2. The company will likely register top-line growth when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for FLO’s quarterly revenues is pegged at $1.2 billion, indicating a jump of 5.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flowers Foods’ quarterly earnings per share of 28 cents suggests a drop of 6.7% from the year-ago quarter’s levels. FLO has a trailing four-quarter earnings surprise of 7.6% on average.
Lamb Weston LW currently has an Earnings ESP of +1.94% and a Zacks Rank of 3. LW is likely to witness top-and-bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $1.08 per share, suggesting a 44% rise from the year-ago fiscal quarter’s reported number.
The consensus estimate for Lamb Weston’s quarterly revenues is pegged at $1.6 billion, implying a 41.2% increase from the figure reported in the prior-year fiscal quarter. LW delivered an earnings beat of 44.8%, on average, in the trailing four quarters.
Kellogg Company K has an Earnings ESP of +0.42% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for K’s quarterly revenues is pegged at $4.1 billion, indicating a jump of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg’s quarterly earnings per share of $1.08 suggests a growth of 44% from the year-ago quarter’s levels. K has a trailing four-quarter earnings surprise of 44.8%, on average.
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Kellogg Company (K) : Free Stock Analysis Report
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United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
