United Natural Foods falls 12% as Q3 revenue misses analyst estimates

United Natural Foods Inc. reported Q3 revenue of $7.72 billion, missing the $7.8 billion analyst consensus by 2.02%.

"The top-line miss reflects ongoing pressure in our customer channels," CEO Sandy Douglas said in the earnings release.

Adjusted earnings per share came in at $0.77, below the $0.81 estimate and representing a 5.34% miss. A year earlier, the company earned $0.44 per share. Net income reached $33 million, or $0.52 per share on a GAAP basis. Revenue declined 4.2% from $8.06 billion in the same quarter last year.

The Providence, Rhode Island-based distributor's shares fell more than 12% on June 9, erasing a portion of the stock's 53.4% year-to-date gain through the prior session. The S&P 500 has risen 8.2% over the same period.

The company maintained its full-year guidance, forecasting fiscal 2026 adjusted EPS of $2.40 to $2.60 and revenue of $31.1 billion to $31.3 billion. The current consensus estimate for the fourth quarter stands at $0.52 per share on $7.58 billion in revenue.

UNFI had beaten consensus EPS estimates in three of the prior four quarters, including a 21.57% beat in the fiscal second quarter when it reported $0.62 per share against a $0.51 forecast.

The Zacks Rank on the stock is #3 (Hold), reflecting mixed estimate revision trends ahead of the release.

The revenue miss and sharp stock decline signal that UNFI's wholesale distribution business faces headwinds from shifting consumer demand and competitive pressure in the organic and specialty food segment. Investors will watch the company's fiscal fourth-quarter results for signs of stabilization in top-line growth.

This article is for informational purposes only and does not constitute investment advice.