United Natural Foods Stock Jumps on Surprise Adjusted Profit

Key Takeaways

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.

UNFI Raises Fiscal 2025 Outlook

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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