Things to note as United Natural (UNFI) lines up for third quarter earnings

United Natural Foods, Inc. UNFI is expected to report revenue and earnings growth when it reports its third quarter fiscal 2022 results on June 7. figure.

Zacks’ consensus estimate for earnings has been flat for the past 30 days at 98 cents per share, indicating growth of 4.3% over the figure recorded in the year-ago period. United Natural, which distributes natural, organic, specialty, produce and conventional grocery and non-food products, has a trailing four-quarter profit surprise of 27.1%, on average. UNFI recorded a surprise 2.7% in earnings in the last quarter reported.

United Natural Foods, Inc. Price, Consensus, and EPS Surprise

United Natural Foods, Inc. price-consensus-eps-surprise-chart | Quote from United Natural Foods, Inc.

Things to note

United Natural benefited from business gains from existing and new customers, including cross-selling benefits. The company has gained strength online, thanks to the increase in e-commerce solutions offered by the company. In this regard, the company has deployed additional marketing and analytics capabilities to enhance customers’ brand experience.

Other than that, management is on track to undertake growth initiatives under its future pillar, including brands, professional services and fresh produce. The company undertook takeovers to expand its presence. These increases likely contributed to the performance in the reportable quarter.

Yet United Natural faces ongoing supply chain challenges, affecting the company and its customers. The company battles runaway inflation and labor shortages. The persistence of such factors may have affected the company’s performance during the third fiscal quarter.

What the Zacks Model Reveals

Our proven model does not conclusively predict an earnings beat for United Natural this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.

United Natural currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Stocks with a favorable combination

Here are a few other companies worth considering, as our model shows they have the right combination of elements to beat on earnings this season.

Kroger KR currently has a +2.95% Earnings ESP and a #2 Zacks Rank. The company is expected to post earnings growth when it reports its first-quarter fiscal 2022 results. Zacks consensus estimate for quarterly earnings per share of $1.27 suggests a 6.7% increase compared to the figure published a year ago. You can see the full list of today’s Zacks #1 Rank stocks here.

Kroger’s revenue is expected to grow year over year. The revenue consensus mark is set at $43,220 million, indicating a 4.7% increase over year-ago quarter levels. KR has a last four quarter earnings surprise of 22.1% on average.

WillScot Mobile Mini WSC currently has an Earnings ESP of +5.26% and a Zacks rank of #2. quarter of 2022. Zacks consensus estimate for quarterly revenue is pegged at $523.3 million, indicating a 13.5% improvement over the figure reported in the prior year quarter.

Additionally, Zacks’ consensus estimate for WillScot Mobile Mini’s net income has been flat over the past 30 days at 29 cents per share. The metric reflects growth of 107.1% from the number reported a year ago. WSC has posted a 7.4% profit beat, on average, over the past four quarters.

Casey General Stores CASY currently has an Earnings ESP of +0.38% and a Zacks Rank of 3. CASY is expected to see an increase in revenue over last year’s quarterly reading when it reports fourth quarter results from fiscal 2022. Zacks consensus estimate for CASY revenue is set at $3,439 million, indicating a 44.6% increase over the figure reported in the prior fiscal quarter .

Zacks’ consensus estimate for Casey’s General Stores quarterly earnings is pegged at $1.54 per share, suggesting a 37.5% improvement over the quarterly figure reported for last fiscal year. CASY has a four-quarter earnings surprise of 21.6%, on average.

Stay on top of upcoming earnings announcements with Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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