Whole Foods Supplier United Natural Foods' Stock Soars on Surprise Profit

Key Takeaways

• United Natural Foods shares surged 25% Tuesday after the Whole Foods supplier reported a surprise adjusted profit on higher volumes and inflation.
• The grocery wholesaler posted adjusted earnings per share of $0.01, while analysts were anticipating a per-share loss of $0.07.
• Sales at its Whole Foods-related Supernatural division soared 18.6% year-over-year to $1.84 billion.

United Natural Foods (UNFI) shares soared 25% Tuesday afternoon as the grocery wholesaler posted a surprising adjusted profit on increased volumes and prices as sales surged from its biggest customer, Amazon (AMZN)-owned Whole Foods Market.

The company reported fourth-quarter adjusted earnings per share (EPS) of $0.01, while analysts polled by Visible Alpha were expecting a per-share loss of $0.07. Revenue was up 10.0% year-over-year to $8.16 billion, also exceeding estimates. 

UNFI said it benefited from improving unit volumes, which turned positive toward the end of the quarter. In addition, sales were boosted by inflation.

Whole Foods Unit Sales Jump 18.6%

Revenue from its Whole Foods-related Supernatural division jumped 18.6% to $1.84 billion. Chains revenue was up 9.0% to $3.43 billion.

The company added that its cost-saving efforts resulted in a decline in operating expenses to 13.2% of sales from 13.5% last year.

After today's surge, shares of United Natural Foods are up nearly 30% this year.

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