US Foods Holding Corp (USFD) stock surged 5.01% in intraday trading after the company reported strong first-quarter results and announced a new $1 billion share repurchase program. The food distributor's positive performance and shareholder-friendly initiatives have boosted investor confidence.
US Foods reported first-quarter net income of $115 million and adjusted earnings of $0.68 per diluted share, up from $0.54 a year earlier. While the adjusted EPS slightly missed analysts' expectations of $0.69, net sales for the quarter rose to $9.35 billion from $8.95 billion in the previous year. The company's gross profit also increased to $1.61 billion.
In addition to the solid quarterly performance, US Foods reaffirmed its full-year 2025 guidance, projecting 17% to 23% growth in adjusted EPS and 4% to 6% growth in net sales. The company's confidence in its outlook, coupled with the announcement of a new $1 billion share repurchase program, has been well-received by investors. US Foods also stated that it expects to return more share repurchases in the second quarter and the balance of the year, further boosting shareholder value.
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