United Natural (UNFI) Gears Up for Q3 Earnings: What to Expect?

United Natural Foods, Inc. UNFI is likely to register top-line growth when it reports third-quarter fiscal 2024 earnings on Jun 5. The Zacks Consensus Estimate for revenues is pegged at $7.56 billion, which suggests an increase of 0.8% from the prior-year quarter’s reported figure.

The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 10 cents per share. However, this indicates an 81.5% decline from the year-ago quarter’s reported figure. UNFI has a trailing four-quarter earnings surprise of 179.3%, on average.

Factors to Note

United Natural has been witnessing a challenging industry backdrop over the past few quarters. Consumers are buying less to manage their budgets and shifting away from traditional grocery stores, possibly seeking more affordable options like discount stores, bulk buys or online shopping. On its lastearnings call management highlighted that it anticipates a more prolonged recovery for volume. These factors raise concerns for the quarter under review.

However, United Natural’s focus on its transformation journey, which involves several strategic elements, bodes well. As part of this process, the company is rapidly implementing near-term value-creation initiatives that are expected to contribute significantly to its operating efficiencies. Apart from this, United Natural’s efforts to improve the supply chain process have been working well.

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

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

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

United Natural’s sales are benefiting from e-commerce strength due to increased e-commerce solutions offered by the company. Several of the company’s Independents and Chains channels provide e-commerce solutions to their customers. Further, United Natural offers digital platforms and the support its customers need.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for United Natural this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

United Natural currently carries a Zacks Rank #3, while it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

PepsiCo, Inc. PEP currently has an Earnings ESP of +0.15% and a Zacks Rank of 2. The company is likely to register a top-and-bottom-line increase when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for PepsiCo’s quarterly revenues is pegged at $22.7 billion, which implies growth of 1.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, the Zacks Consensus Estimate for PepsiCo’s quarterly earnings of $2.16 suggests an increase of 3.4% from the year-ago quarter’s levels. PEP has a trailing four-quarter earnings surprise of 5.1%, on average.

The J. M. Smucker Company SJM currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2024 earnings per share is pegged at $2.32, which suggests a 12.1% decline year over year.

The Zacks Consensus Estimate for J. M. Smucker’s quarterly revenues is pegged at $2.25 billion, which indicates growth of 0.5% from the figure reported in the prior-year quarter. SJM has a trailing four-quarter earnings surprise of 7.5%, on average.

Philip Morris PM currently has an Earnings ESP of +0.33% and a Zacks Rank #3. The company is likely to register an increase in the top line when it reports second-quarter 2024 numbers. The consensus mark for revenues is pegged at $9.13 billion, which implies an increase of 1.9% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Philip Morris’ quarterly earnings per share of $1.57 suggests a 1.9% drop from the year-ago quarter. PM has a trailing four-quarter earnings surprise of 3.2%, on average.

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

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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

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Philip Morris International Inc. (PM) : Free Stock Analysis Report

PepsiCo, Inc. (PEP) : Free Stock Analysis Report

The J. M. Smucker Company (SJM) : Free Stock Analysis Report

United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report

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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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