Organic food and grocery distributor United Natural Foods (NASDAQ: UNFI) outperformed benchmark indices that fell this year (-19%). The company provides organic and natural grocery, vitamins, supplements, gourmet, ethnic, meat, deli and private label products under many brands. The company had to navigate macroeconomic headwinds, including inflationary pressures, pushing food inflation to 10.8%, record high fuel prices and labor challenges affecting both its customers and the company. While headwinds are expected to continue, supply chains and driver job opportunities are improving with the new accelerated compensation and flexible scheduling programs. The company expects home food sales to remain strong as more people continue to work from home on tighter household budgets in the face of food inflation. The company serves both upstream premium offerings and downstream value segment markets, giving it the breadth and flexibility to continue to grow customers in a variety of macro environments. United Natural Foods serves more than 30,000 independent food stores. The company also supports communities and the planet with its broad-based ESG initiatives. Cautious investors seeking exposure in a healthy lifestyle grocery supplier can look to opportunistic pullback levels in United Natural Foods stocks.
Fiscal Q3 2022 Profit Release
On June 7, 2022, United Natural released its third quarter 2022 fiscal results for the quarter ended April 2022. The company reported earnings of $1.10 per share, beating consensus analysts at $0.98 per share. share at $0.12 per share. Revenues grew 9.2% year-over-year (year-on-year) to $7.24 billion, better than consensus analyst estimates of $7.09 billion. Sandy Douglas, CEO of United Natural Foods said: “Our third quarter performance further demonstrates UNFI’s flexibility and focus on serving customers despite a challenging work environment. It is clear that our Fuel the Future strategy is working and our customers are To a successful end to our fiscal year, we continue to make progress in simplifying our business and focusing resources on key areas that create value for our customers, suppliers and shareholders.”
United Natural provided upward guidance for the full fiscal year 2022 in earnings per share between $4.65 to $4.90 versus $4.16. For the full year 2022, revenues are expected to be between $28.8 billion and $29.1 billion versus $28.65 billion.
Takeaway for conference calls
CEO Douglas highlighted the many headwinds United Natural faced in the quarter. The company continues to stabilize its workforce and the offering of many of its products is increasing. It closed the quarter with the second highest occupancy rate of the year thanks to the company’s proactive actions. The company reduced its driver vacancy rate to 9% and DC’s vacancy rate to 7% by the end of the quarter thanks to its flexible scheduling and incentive incentives. The company continues to increase sales from existing and new customers, which has prompted it to raise its expectations for the future. The Fuel the Future strategy is working to increase the market share of the total addressable market (TAM) of $140 billion. The four keys of the strategy are to deliver significant value, enhance collaboration with suppliers, provide unparalleled career opportunities for employees, and support communities with ambitious ESG initiatives. He concluded: “Our strategy for seizing the opportunity is simple. We are focused on getting better at what we do. We are working to improve our capabilities and improve our end-to-end execution for the benefit of our customers.” , suppliers, employees and, more importantly, our shareholders.”
UNFI Opportunistic Pricing Levels
Using the gun charts on the weekly and daily time frames provides an accurate picture of the landscape for UNFI stocks. The weekly gun chart recently peaked from the Fibonacci (fib) level of $49.37. The weekly inverse breakdown of the pups was formed when the 5-period moving average (MA) fell to $39.90, followed by the 15-period MA at $41.72 and 50-period MA at $42.18. The weekly stochastic formed a mini inverse pup that fell through the 40 band. The weekly lower Bollinger Bands (BBs) are in the $35.00 fib area. The weekly market structure low (MSL) buy triggers above the $40.46 level. The daily gun chart has been in tight consolidation with a flat 5-period MA at $39.60 and a 15-period MA at $39.57. The 50-period daily MA stands at $41.30 and the 200-period MA at $43.63. The daily BBs are in a compression that precedes a price range expansion. The daily stochastic has a mini pup pushing up through the 40 band. Cautious investors can watch for opportunistic pullbacks in the $38.82 fib, $37.82, $36.91 fib, $35.29 fib, $33.63, $32.30 fib and the $30.66 fib. level. Upward trajectories range from the $45.00 fib to the $55.00 fib level.
This post United Natural Foods stock is ready to be eaten as a snack was original published at “https://www.entrepreneur.com/article/431403”