WASHINGTON (dpa-AFX) - Organic food supplier United Natural Foods Inc. (UNFI), Monday reported a small drop in profit for the second quarter, despite a significant growth in revenues, hurt mostly by a one-time loss and lower gross margins. Earnings for the quarter fell short of Wall Street analysts' estimates, while revenues were in line. Shares of the company slipped 7 percent in the after-hours trade, following the news.
Providence, Richmond-based United Natural Foods' second-quarter profit dropped to $27.8 million or $0.55 per share from $28.0 million or $0.56 per share last year.
Adjusted earnings for the quarter rose to $0.65 per share from $0.56 per share a year ago. On average, 18 analysts polled by Thomson Reuters estimated earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the second quarter grew 22.5 percent to $2.02 billion from $1.65 billion last year. Analysts estimated revenues of $2.02 billion for the quarter.
'We also faced several challenges during the quarter highlighted by weakness in the Canadian dollar and a non-recurring reduction to net sales associated with a contractual obligation to a customer that we identified and brought to their attention,' said CEO Steven Spinner.
Gross margin slipped to 14.8 percent from 16.3 percent, while operating costs, as a percent of sales, decreased 94 basis points to 12.4 percent.
Looking forward to the full year 2015, the company expects adjusted earnings of $2.90 to $2.99 per share on revenues of $8.19 billion to $8.29 billion. Analysts currently expect earnings of $2.97 per share on revenues of $8.33 billion for 2015.
Earlier, the company expected earnings of $2.88 to $3.01 per share on revenues of $8.13 billion to $8.38 billion.
UNFI closed Monday's trading at $81.48, up $1.74 or 2.18%, on the Nasdaq. The stock, however, slipped $6.48 or 7.95% in the after-hours trade.
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