United Natural Foods Profit Up, Details Strong Sales Outlook; Stock Up

(RTTNews) - United Natural Foods Inc. (UNFI) Thursday reported a near 28 percent jump in fourth-quarter profit, as the specialty foods distributor benefited from growth in both sales and margins. Results for the quarter topped Wall Street estimates.

The company detailed its earnings outlook for 2014, the midpoint of which is indicated to miss Wall Street estimates, while sales expectations are buoyant.

Following the results, shares of United Natural Foods touched a new high for the year, climbing 7 percent to $64.00 in after-hours trading on the Nasdaq. It closed the day's session at $59.97, up $1.16 or 1.97%. The stock has a 52-week range of $47.20 - $62.95.

The Providence, Richmond-based company posted quarterly net income of $32 million or $0.65 per share, compared with $25 million or $0.51 per share last year.

On average, 11 analysts polled by Thomson Reuters expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed to $1.64 billion from $1.34 billion in the prior year. Analysts estimated sales of $1.63 billion for the quarter.

Results were also aided by gross margin that climbed 11 basis points from a year ago, and operating margin was up 20 basis points.

For fiscal 2014, the company expect earnings in the range of $2.40 to $2.50 per share and sales of $6.65 billion to $6.78 billion. Analysts expect earnings of $2.49 per share on sales of $6.61 billion.

Shares of the company closed Thursday at $59.97, up $1.16 or 1.97%, on a volume of 381 thousand shares. In after hours, the stock gained $4.03 or 6.72% at $64.00.