RBC Capital analyst William Kirk kept his Underperform rating on United Natural Foods after its Q4 earnings and revenue miss. The analyst adds that the company’s organic net sales growth of 10.7% was below 11.5% consensus and down from 11.8% last quarter. With gross margins also shrinking, Kirk points to United Natural Foods’ declining profitability and maintains that the cost of servicing Whole Foodsis rising. The analyst adds that the company’s synergy of its Supervalu deal has underperformed while its leverage increased.
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