Stock of the Day

February 9, 2023

Unifi (UFI)

$6.30
-$0.10 (-1.5%)
Market Cap: $117.47M

About Unifi

Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in North America, Central America, South America, Asia, and Europe. Its polyester products include partially oriented yarn, textured, solution and package dyed, twisted, beamed, and draw wound yarns in virgin or recycled varieties; and nylon products comprise virgin or recycled textured, solution dyed, and spandex covered yarns. The company also provides recycled solutions made from pre-consumer and post-consumer waste, such as plastic bottle flakes, polyester polymer beads, and staple fiber. It offers recycled and synthetic products primarily to yarn manufacturers, knitters, and weavers that produces yarn and fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE brand. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.

Today's Trend

Unifi, Inc. (NYSE: UFI) is trading higher, and the main catalyst appears to be a mix of analyst estimate revisions following the company’s recent earnings update. Unifi’s latest quarter beat expectations, which likely helped support sentiment, even though the company still posted a loss and slightly missed revenue estimates.

Here’s what investors are reacting to:

  • Unifi’s most recent quarterly earnings came in better than expected, with EPS of $(0.20) versus consensus of $(0.22), suggesting results were a bit less weak than feared.
  • Sidoti reiterated a longer-term recovery view by modeling a return to profitability, including FY2027 EPS of $0.06 and FY2028 EPS of $0.70, which may be helping offset near-term concerns.
  • Sidoti raised its FY2026 EPS forecast slightly to $(1.30) from $(1.20), but the estimate still implies a meaningful loss this year.
  • The firm cut multiple near-term forecasts for Unifi, including Q1 2027 to $(0.15), Q2 2027 to $(0.11), and Q3 2027 to $0.12, signaling continued pressure on earnings in the next several quarters.
  • Sidoti sharply lowered its Q4 2027 estimate to $0.21 from $0.42, suggesting expectations for the pace of recovery have moderated.

Overall, UFI appears to be rising on a combination of better-than-expected recent results and optimistic long-term earnings projections, but the analyst revisions also show that the turnaround path remains uneven and loss-making in the near term.

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