United Natural Foods Profit Tops Estimates - Update

(RTTNews) - United Natural Foods Inc. (UNFI) Tuesday reported a higher first-quarter profit, helped by double-digit sales growth and expanded margins. While quarterly earnings topped Wall Street estimates, sales fell shy of expectations.

The company reaffirmed its outlook for 2014.

"Continued demand and UNFI's focus on its core strategies delivered strong results," said CEO Steven Spinner.

Providence, Richmond-based United Natural posted quarterly net income of $27.8 million or $0.56 per share, compared with $21.5 million or $0.43 per share a year ago.

On average, 13 analysts polled by Thomson Reuters estimated earnings of $0.54 per share for the quarter.

Net sales for the quarter climbed 13.6 percent to $1.60 billion from $1.41 billion last year. Analysts estimated sales of $1.61 billion.

Gross margin for the quarter grew 20 basis points from a year ago to 16.9 percent.

For fiscal 2014, the company still expects earnings of $2.40 to $2.50 per share and sales of $6.65 billion to $6.78 billion. Analysts expect earnings of $2.51 per share on sales of $6.74 billion.

The company's stock closed Tuesday at $8.77, down $0.06 or 0.09%, on a volume of 595 thousand shares on the Nasdaq. In after hours, the stock dropped $0.28 or 0.41% at $68.49.