Organic Is Still Selling at United Natural Foods

Apparently there's still a market for organic and natural foods.

Wholesaler United Natural Foods(UNFI Quote) surpassed third-quarter expectations and raised its full-year outlook.

The news sent shares of the company up 10% to $25.69 in morning trading Tuesday.

During the quarter United Natural earned $16.8 million, or 39 cents a share, compared with $13 million, or 30 cents a share, in the year-ago period. Analysts expected EPS of 34 cents.

"Our record earnings in the third quarter reflect our continued focus on cash flow, market share and the further expansion and integration of our specialty business," President and CEO Steven Spinner said in a statement.

The company is also benefiting from lower diesel fuel costs and tighter expense controls.

Revenue reached $889.5 million, up from $887 million a year earlier.

The company boosted its full-year outlook to a range of $1.34 to $1.38 a share, up from its previous guidance of $1.28 to $1.36 a share.