United Natural (UNFI) Queued for Q1 Earnings: Things to Note
United Natural Foods, Inc. UNFI will likely register top-line growth when it releases first-quarter fiscal 2024 earnings on Dec 6. However, the bottom line is expected to decline year over year.
The Zacks Consensus Estimate for quarterly revenues is pegged at $7.6 billion, indicating a rise of 0.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for fiscal first-quarter bottom line has widened from a loss of 10 cents to a loss of 26 cents in the past 30 days. The projection indicates a deterioration from earnings of $1.13 reported in the year-ago quarter.
The leading distributor of natural, organic and specialty food has a trailing four-quarter negative earnings surprise of 2.9% on average. UNFI reported an earnings surprise of 46.8% 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 been battling softness in the Retail business. In its last earnings call, management highlighted that it continues to witness pressure in the retail footprint, mainly located in the Minneapolis-Saint Paul market, stemming from tightening consumer demand, lower government support programs and stiff price competition.
The company has been witnessing reduced levels of procurement gains, fewer benefits from inflation and increased levels of shrinkage, which is hurting margins. For the first quarter of fiscal 2024, the gross profit margin is expected to contract 120 basis points to 13.4%.
United Natural is committed to its four transformation pillars based around network automation and optimization, commercial value creation, enhancing digital offerings and work related to technology infrastructure unification and modernization. The company’s sales are benefiting from e-commerce strength, thanks to the increased digital solutions the company offers. The trends mentioned above might have been a tailwind in the quarter to be reported.
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 carries a Zacks Rank #3 and has an Earnings ESP of -66.48%.
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 around.
Campbell Soup CPB has an Earnings ESP of +0.07% and a Zacks Rank #3. The company is slated to witness a top- and bottom-line decline when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for CPB’s quarterly revenues is pegged at $2.5 billion, suggesting a drop of 2.7% 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 Campbell Soup’s quarterly earnings has remained unchanged in the past 30 days at 87 cents, suggesting a decline of 14.7% from the year-ago quarter’s level. CPB has a trailing four-quarter earnings surprise of 8.6% on average.
Costco Wholesale COST currently has an Earnings ESP of +1.98% and a Zacks Rank #3. The company is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $57.5 billion, indicating a rise of 5.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s quarterly earnings of $3.44 suggests an increase of almost 11% from the year-ago quarter’s levels. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
lululemon athletica LULU currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.27 suggests a rise from $2.00 reported in the year-ago quarter.
lululemon’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, indicating a rise of 17.8% from the figure reported in the prior-year quarter. lululemon has a trailing four-quarter earnings surprise of 6.8% on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Campbell Soup Company (CPB) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report
