United Natural Foods Inc. (UNFI) is set to unveil its third quarter fiscal 2012 results on June 5, 2012, before the market opens. The Zacks Consensus Estimate for the third quarter is 56 cents per share (year-over-year increase of 16.7%). The Zacks Consensus Revenue Estimate for the third quarter is $1.35 billion (year-over-year increase of 12.6%).

Second Quarter Overview

United Natural Foods delivered better-than-expected second quarter 2012 earnings of 45 cents per share, exceeding the Zacks Consensus Estimate by a penny. The earnings also surpassed the prior-year earnings by 6 cents.

Net sales for the quarter increased 15.5% year over year to $1.29 billion, exceeding the Zacks Consensus Estimate of $1.26 billion. Higher consumer demand for food and the addition of the new national customer credited the strong sales growth.

(Read our full coverage on this earnings report: United Natural Beats, Trims Outlook).

Agreement of Estimates Revision

Over the past 30 days, all the 14 analysts providing estimates on United Natural Foods have left their earnings estimates for the third quarter of 2012 unchanged.

Only one of the 15 analysts providing estimates on UNFI has revised its earnings estimate for the fiscal 2012 in a negative direction over the past 30 days. Only one of the 14 analysts providing estimates on United Natural Foods has revised its earnings estimate for the fiscal 2013 in a positive direction.

United Natural Foods has been performing well on the back of productivity initiatives taken up by the company, reduced operating costs and rising consumer demand for food. However, the analyst might have reduced earnings estimates with the company announcement of guidance cut. We thus expect a mixed trend for the upcoming quarter.

Magnitude of Estimate Revisions

The earnings estimate for the third quarter as well as fiscal 2013 has remained static over the past 30 days at 56 cents per share and at $2.17 per share, respectively. The earnings estimate has declined by a penny to $1.90 per share for fiscal 2012.

Surprise History

United Natural Foods has surpassed earnings estimates in one of the last four quarters, with break-even in the last three quarters. On average, the earnings surprise was positive 2.27%.

Our Recommendation

United Natural, which competes with Nash Finch Co. (NAFC), currently holds a Zacks #3 Rank (short-term Hold rating). On a long-term basis, we provide a Neutral recommendation on the stock.

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