United Natural Foods lifts annual outlook as Q2 results trump estimates; stock up

Investing.com -- United Natural Foods (NYSE:UNFI) shares climbed nearly 5% in premarket trading Tuesday after the company reported second-quarter results that beat analyst estimates and lifted its annual outlook. 

For Q2, the food company reported earnings per share (EPS), topping the consensus estimate of $0.18. Revenue also beat expectations, with United Natural Foods generating $8.16 billion for the quarter, while analysts expected $7.95 billion.

Adjusted EBITDA for the period stood at $145 million, ahead of the expected $137.4 million.

“During the second quarter, we delivered solid sales growth and our sixth consecutive quarter of sequentially improving adjusted EBITDA," said Sandy Douglas, CEO of UNFI.

"As we look to the second half of the fiscal year, we remain focused on further execution of our plan and identifying new opportunities to bring increasing value, while delivering our updated outlook and continuing to deleverage our balance sheet."

The company raised its full-year EPS forecast to a range of $0.70 to $0.90, up from its previous outlook of $0.40 to $0.80, topping the consensus projection of $0.80.

Revenue expectations were also lifted to $31.3 billion to $31.7 billion, from a prior range of $30.6 billion to $31.0 billion, also above $31.11 billion estimated by analysts.