United Natural Reports 29 Percent Higher 3Q Profit

DAYVILLE, Conn. (AP) — United Natural Foods Inc. said Tuesday fiscal third-quarter earnings rose to top Wall Street expectations as the food distributor gained market share and boosted margins.

Earnings rose 29 percent to $16.8 million, or 39 cents per share, compared with $13 million, or 30 cents per share, a year earlier.

Sales rose to $889.5 million from $887 million.

Analysts polled by Thomson Reuters expected earnings of 34 cents and revenue of $891.5 million.

The company focused on boosting both margins and market share, while trimming expenses and improving operations.

Gross margin was 19 percent — up 27 basis points from 18.7 percent in the year-ago third quarter.

For fiscal 2009, the company predicts sales between $3.45 billion and $3.5 billion and earnings between $1.34 per share and $1.38 per share — up from prior expectations of $1.28 per share to $1.36 per share.

For the year, analysts predict $1.30 per share and revenue of $3.49 billion.

Shares rose $3.10, or 13.3 percent, to $26.40 in morning trading.