11:15 AM EST, 12/10/2024 (MT Newswires) -- Shares of United Natural Foods ( UNFI ) soared intraday Tuesday after the grocery wholesaler reported stronger-than-expected gains in fiscal first-quarter revenue and raised its full-year sales outlook amid volume growth in its wholesale business.

Revenue climbed to $7.87 billion for the three-month period ended Nov. 2 from $7.55 billion the year earlier and surpassed the $7.61 billion average analyst estimate on FactSet. Adjusted earnings per share swung to a profit of $0.16 from a loss of $0.04, surprising the consensus expectation for a $0.02 loss.

Shares of United Natural Foods ( UNFI ) soared 23% in Tuesday trade.

Sales in the company's chains division rose 3.5% to $3.29 billion. Revenue rose 14% to $1.84 billion in its supernatural segment while it dipped 2.4% to $1.85 billion in its independent retailers unit. Consolidated wholesale unit volumes were up nearly 2%, benefitting from new business.

"Our performance this quarter represents a solid start to fiscal 2025 and serves as an early proof point of our recently introduced multi-year strategic plan predicated upon bringing value to our customers and suppliers while enhancing our efficiency, improving free cash flow and reducing net leverage," Chief Executive Sandy Douglas said in a statement.

United Natural Foods ( UNFI ) raised its fiscal 2025 sales outlook to a range of $30.6 billion to $31 billion from between $30.3 billion and $30.8 billion previously. Management doubled the bottom end of its adjusted EPS forecast, with the updated range now between $0.40 and $0.80.

FactSet-surveyed analysts are modeling for revenue and adjusted EPS of $30.72 billion and $0.55, respectively, for the ongoing year. On an unadjusted basis, United Natural Foods ( UNFI ) now expects to report a loss of $3 million to $31 million.

Positive volume trends have continued into the second quarter, Douglas told analysts on a conference call, according to a preliminary FactSet transcript.

Price: 31.20, Change: +6.52, Percent Change: +26.40