United Natural Foods (UNFI) - Get United Natural Foods, Inc. Report shares dropped on Wednesday after the organic-food provider reported weaker-than-expected revenue for the fiscal 2021 third quarter ended May 1.
Revenue registered $6.62 billion, down 5.9% from a year earlier and below the Bloomberg analyst forecast of $6.79 billion.
The drop reflected the year-earlier quarter's benefit "from strong customer demand driven by the initial responses to COVID-19," the company said in a statement.
To be sure, adjusted earnings per share totaled 94 cents in the latest quarter, beating analysts’ estimate of 87 cents. GAAP earnings per share registered 80 cents, half the $1.60 of a year earlier.
The company sees adjusted EPS of $3.05 to $3.55 for the full fiscal year, compared to analysts’ prediction of $3.43.
United Natural Foods, Providence, R.I., recently traded at $32.76, down 19%. The stock has slumped 74% over the past six months.
After a move up above $36 by United Natural in mid-April, TheStreet.com Founder Jim Cramer said, "This stock is on a monster move. I'd wait for it to cool off."
In March, United Natural extended its distribution tie-up with Amazon's AMZN Whole Foods until September 2027, as demand for healthy food at home continued to rise.
The existing contract between the two companies was set to expire in October 2025.
"This extension allows both companies to maintain focus on what is most important: continuing to meet the growing demand for healthy food at home as we navigate through the global pandemic,” UNFI Chairman and Chief Executive Steven Spinner said in a statement.
"UNFI plays a key role in ensuring Whole Foods Market is able to meet the growing demand for high-quality products across our network of stores and facilities,” said Bart Beilman, senior vice president of supply chain and retail operations at Whole Foods.