United Natural Foods Inc. (UNFI) shares surged more than 20% Tuesday morning to their highest point in 18 months after the health foods supplier reported a surprise adjusted profit for the first quarter of fiscal 2025.
UNFI, which supplies health-focused retailers like Amazon's (AMZN) Whole Foods Market, reported $7.87 billion in revenue, up from $7.55 billion last year and above the $7.62 billion consensus estimate of analysts polled by Visible Alpha.
The company posted a net loss of $0.35 per share, wider than the expected loss of $0.19 per share. However, UNFI reported adjusted net income of $0.16 per share when an adjusted loss of $0.04 per share was projected.
Chief Executive Officer (CEO) Sandy Douglas said the quarter's results are a "solid start" to the new fiscal year and an "early proof point" of the success of recently introduced cost-cutting measures.
The company also updated its fiscal 2025 guidance, projecting revenue of $30.6 billion to $31.0 billion, up from $30.3 billion to $30.8 billion previously. It also lifted the bottom end of its projected net loss and loss-per-share ranges to $31 million and $0.45, respectively, from $41 million and $0.65.
UNFI shares recently were up 24% to $30.60, returning to levels last hit in March 2023.
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