United Natural Foods, Inc. UNFI is likely to register top and bottom-line growth when it reports first-quarter fiscal 2025 earnings on Dec. 10. The Zacks Consensus Estimate for revenues is pegged at $7.62 billion, implying a 0.9% increase from the prior-year quarter’s reported figure. The consensus mark for earnings has remained unchanged in the past 30 days at 1 cent per share, indicating a substantial increase from a loss of 4 cents reported in the year-ago quarter. UNFI has a trailing four-quarter earnings surprise of 199.3%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors Likely to Influence UNFI’s Upcoming Results

United Natural has been benefiting from operational improvements, including significant shrink reduction and streamlined SG&A expenses. The company’s efficiency, like implementing advanced technology, further enhances operational efficiency.

United Natural’s strategic business plan, aimed at enhancing customer and supplier value, expanding margins and generating free cash flow, has also been working well. The strategy emphasizes a robust value proposition for retailers, featuring a diverse portfolio of differentiated products and value-added services that foster profitable growth. The company has been working to create a more efficient distribution center network to lower costs and capital intensity while improving profitability.

Gains from these efforts and moderating inflation rates are likely to aid results in the quarter under review. United Natural also benefits from strong e-commerce sales, as several of the company’s Independents and Chains channels provide e-commerce solutions to their customers.  

However, United Natural has been bearing the brunt of weakness in the Retail business for a while. A highly price-sensitive consumer base has been hurting same-store sales as many consumers remain cautious about spending.

Earnings Whispers for UNFI

Our proven model doesn’t conclusively predict an earnings beat for United Natural Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

United Natural Foods carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.

US Foods Holding USFD has an Earnings ESP of +0.15% and a Zacks Rank of 2 at present. USFD’s top line is anticipated to advance year over year when it reports fourth-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.47 billion, which suggests a 6% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to register an increase in the bottom line. The consensus estimate for US Foods Holding’s fourth-quarter earnings is pegged at 80 cents per share, up 25% from the year-ago quarter. USFD has a trailing four-quarter negative earnings surprise of 0.4%, on average.

Grocery Outlet Holding GO currently has an Earnings ESP of +1.25% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period.

Grocery Outlet's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.

B&G Foods BGS has an Earnings ESP of +3.13% and currently carries a Zacks Rank of 3. BGS’s top line is anticipated to decline year over year when it reports fourth-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $558.7 million, which suggests a 3.4% fall from the figure reported in the year-ago quarter. 

The company is expected to register an increase in the bottom line. The consensus estimate for B&G Foods’ fourth-quarter earnings is pegged at 32 cents a share, up 6.7% from the year-ago quarter. BGS has a trailing four-quarter negative earnings surprise of 9.5%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

B&G Foods, Inc. (BGS) : Free Stock Analysis Report

United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report

Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report

US Foods Holding Corp. (USFD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research