Stock Track | United Natural Foods Surges 5.24% Pre-market on Strong Q3 Earnings Beat and Maintained Guidance

Stock Track
10 Jun

Shares of United Natural Foods Inc. (UNFI) soared 5.24% in pre-market trading on Tuesday following the release of its third-quarter fiscal 2025 earnings report. The company's results significantly surpassed analyst expectations, demonstrating resilience in a challenging market environment.

UNFI reported an adjusted earnings per share (EPS) of $0.44 for Q3, more than doubling the consensus estimate of $0.21. The company's sales also impressed, reaching $8.06 billion and beating the expected $7.78 billion. This represents a 7.5% increase in net sales compared to the same period last year, driven by a 4% rise in wholesale unit volumes and new business from both existing and new customers. Additionally, adjusted EBITDA climbed to $157 million, surpassing the projected $142.1 million.

Despite these positive results, UNFI faced some challenges. The company reported a net loss of $7 million for the quarter and disclosed unauthorized activity on certain information technology systems in early June. However, investors seemed to focus on the company's strong performance and its decision to maintain its fiscal 2025 net sales guidance between $31.3 billion and $31.7 billion. This outlook, combined with the better-than-expected Q3 results, appears to be fueling the stock's pre-market rally as traders anticipate continued growth and improved profitability for the natural and organic food distributor.

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