United Natural Foods Takes Another Massive Goodwill Charge Against Earnings
In a preview to grocery wholesale distributor United Natural Foods' (NYSE: UNFI) fiscal first-quarter 2020 earnings, I wrote that investors were likely to either embrace the report or flee from it. They ended up fleeing. The company's filing, issued before the markets opened on Wednesday, revealed a massive goodwill impairment charge, smaller additional charges against earnings, and an alarming cash burn. Shares of the consumer staples investment were off roughly 28% in midday trade. As we review what went wrong over the last three months, note that all comparable numbers refer to the prior-year quarter.
Data source: United Natural Foods. EPS = earnings per share. N/A = not applicable; earnings not comparable due to outsize one-time charges discussed below.
Image source: Getty Images.
Source Fool.com
