United Natural Foods Plunges 23.87% After Guidance Cut

On April 4, 2025, United Natural Foods experienced a significant drop of 23.87% in pre-market trading, marking a notable decline in its stock performance.

United Natural Foods recently lowered its guidance after sales fell short of estimates, which has contributed to the recent decline in its stock price. The company's financial results for the second quarter, ending on February 1, showed solid sales growth, but the overall market sentiment has been impacted by the company's underperformance in meeting Wall Street's expectations.

Analysts had projected significant growth for United Natural Foods, with consensus estimates indicating a 1.9% increase in sales and a 485.7% rise in earnings for the current financial year compared to the previous year. However, the company's actual performance has not aligned with these optimistic projections, leading to a downward revision in its guidance and subsequent stock price decline.

Despite the current challenges, United Natural Foods has historically delivered strong earnings surprises, with an average trailing four-quarter earnings surprise of 408.7%. The company's expected earnings growth rate for the current year remains high, but the recent underperformance has raised concerns among investors about its ability to sustain this level of growth.