United Natural Foods Inc (UNFI) stock surged on Friday after the company reported positive third-quarter earnings. The organic and natural food distributor saw its shares climb 13.5% to $37.67 in after-hours trading following the release of its financial results.
The company reported earnings of $1.34 per share, beating analyst expectations of $1.06 per share. Revenue also exceeded estimates, coming in at $6.67 billion compared to the expected $6.43 billion. UNFI attributed the strong performance to increased demand for organic and natural foods as consumers continue to prioritize health and wellness.
UNFI’s CEO Steven Spinner commented on the earnings report, stating that the company has been able to capitalize on the growing trend towards healthier eating options. “We are pleased to see continued robust demand for our products, especially as more consumers are looking for clean-label, organic, and natural products,” Spinner said in a press release.
The company also announced a new strategic plan to drive growth and profitability, which includes investments in technology, infrastructure, and expanding its product offerings. UNFI has been focusing on expanding its e-commerce capabilities and enhancing its digital platform to better serve customers.
Investors reacted positively to the news, with several analysts upgrading their ratings on the stock and raising their price targets. Analysts at Stifel Nicolaus raised their price target on UNFI from $35 to $45, citing strong earnings and continued growth potential in the organic and natural food market.
Overall, UNFI’s strong performance in the third quarter and its strategic growth plan have instilled confidence in investors, who are optimistic about the company’s future prospects. With a solid earnings report and a clear path forward for growth, UNFI stock is likely to continue its upward momentum in the coming months.