United Natural Foods (NYSE: UNFI) is displaying strong market sentiment today, currently sitting at $45.90 following a 20.8% rise after defying analyst profit predictions.
Rising from a previous close of $37.97, United Natural Foods saw a rise in share price amidst a poor fourth-quarter fiscal report, thanks to the adjusted profit beating the expectations of analysts.
During Covid-19 and the panic of global lockdowns, UNFI witnessed a steep rise in demand to combat distribution shortages. As the market slowly returns to normality, demand has moderated – reflected in the recent fiscal report.
The food distributor logged earnings of 69 cents a share, falling from last year’s earnings of 89 cents. Similarly, UNFI recorded a net income reduction of $10 million, with the company noting a total of $43 million, down from $53 million the previous year.
However, in the face of damaging fiscal data, UNFI reported adjusted earnings of $1.18 a share, whilst analysts forecasted a significantly lower $0.80 a share – supporting the 20.8% rally that the market witnessed today.
As a large, wholesale distributor of natural, organic and specialty foods across North America; UNFI appears to be bouncing back following a post-pandemic earnings slip. With year-on-year growth, UNFI might be one to watch.
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