Sometimes a disappointing earnings report is all a business needs to see its shares plunge. That’s what happened to United Natural Foods (NYSE:UNFI) today, down over 15% at one point in trading. United Natural posted earnings of $1.13 per share. That faltered against analyst projections of $1.16 per share but was higher than last year’s figure, where the company brought in $0.97 per share. In addition, revenue was $7.53 billion, which missed analyst estimates as well.
United Natural Foods was quick to offer reassurance on several fronts. The company not only reaffirmed earlier guidance but also offered word from the CEO about the company’s status. Sandy Douglas, the current CEO, noted that the company’s “…customer pipeline is robust” and that new customers are constantly coming in.
Analysts also seem reasonably happy with United Natural. MKM Partners’ analyst William Kirk held on to his Buy rating on the company. That position, coupled with one other analyst holding a Buy recommendation, is enough to make the company a Moderate Buy. Thanks to the company’s average price target of $48.33, the company offers 21.42% upside potential.
