Why United Natural Foods Was Rocketing Higher This Week

News of an estimates-busting quarter and subsequent analyst price target raises drove United Natural Foods (NYSE: UNFI) stock higher over the past few days. Consequently, according to data compiled by S&P Global Market Intelligence, as of early morning Friday the company's shares were more than 18% higher in price week to date.

A fine way to start the new fiscal year

United, which is the No. 1 wholesale provider of organic and natural food products, unveiled its latest set of quarterly results on Tuesday. In its first quarter of fiscal 2025, ended Nov. 2, the company earned just under $7.9 billion in revenue, a figure that was 4% higher year over year. Better, it flipped dramatically to a bottom-line non-GAAP (adjusted) profit of $0.16 per share, from the 0.04 loss in the year-ago quarter.

Both headline results crushed the consensus analyst estimates.

United chalked up much of the improvement to what it described as "positive volume trends." Management also proffered updated guidance for the entirety of fiscal 2025 -- it now expects to book $30.6 billion to $31 billion for revenue, against the previous projection of $30.3 billion to $30.8 billion. As for adjusted earnings, this metric should land at $0.40 to $0.80, a tighter range than the previously expected $0.20 to $0.80.

Major price target boosts

As often happens when a company outperforms, analysts wasted little time raising their price targets on United. CFRA's Arun Sundaram added $10 per share to his, for a new fair value assessment of $33 per share. In a similar move, Kelly Bania at BMO Capital raised her price target by $9 per share to $32. Both pundits, however, left their equivalents of hold recommendations unchanged.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.