Shares of grocery wholesaler United Natural Foods (NYSE:UNFI) are down nearly 24% at the time of writing today after the company announced third-quarter numbers and slashed the profitability outlook for fiscal 2023.
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Revenue rose 3.7% year-over-year to $7.51 billion and was in line with estimates. EPS at $0.54, on the other hand, fell short of expectations by $0.11. During the quarter, UNFI benefitted from expanding its categories and the addition of new customers.
Nonetheless, the company is seeing margin pressures owing to a challenging macroeconomic backdrop and has slashed its profitability outlook for fiscal 2023. For the year, net sales are expected to range between $30.1 billion and $30.5 billion.
Adjusted EPS for the period is now anticipated between $1.80 and $2.30. This is a significant scaleback from earlier expectations in the range of $3.05 and $3.90.
Overall, the Street has a $31.17 consensus price target on UNFI alongside a Hold consensus rating.
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