TheStreet

Shares of United Natural Foods (UNFI - Get Report) were falling after the company beat earnings estimates but said it was experiencing higher costs. 

The stock was falling 4.66% to $14.34 a share. 

The company said it currently is seeing higher costs and therefore adjusted down its operating profit estimate. More losses on a GAAP basis also are expected. 

Adjusted earnings for the second quarter of 2019 were 44 cents per share, easily beating Wall Street's expectations of 23 cents. The adjusted EPS result was a 38% year-over-year decline. On a GAAP basis, the company reported a loss per share of $6.72. Adjusted EBITDA [earnings-before-interest-and-tax] was $142.6 million. Sales were $6.15 billion, beating analysts estimates of $5.9 billion. 

"We're focused on executing against our plan for the long-term," said Steven L. Spinner, chairman and CEO of the food distributor. "We experienced higher-than-anticipated costs, largely associated with our network realignment projects resulting primarily from Supervalu's previous acquisitions, which we believe will be short-term in nature."

One of the several higher costs for United Foods was interest expense, which climbed to $58.7 million in the 13-week period ended in January 2019 from $4.1 million in the same period in 2018. 

Furthermore, management guided for adjusted EBITDA to be between $580 to $610 million for 2019, down from a previous range of $650 million to $665 million. GAAP loss per share is expected to be between $6.10 and $6.50 for the year. 

The stock has gained roughly 40% year to date.