United Natural Foods (NYSE:UNFI) delivered a solid fiscal third quarter, beating both earnings and revenue expectations, but shares fell more than 6% intra-day today.

The grocery distributor posted adjusted earnings of $0.44 per share for the quarter—more than double Wall Street’s estimate of $0.21. Revenue climbed 7.5% year-over-year to $8.1 billion, topping the consensus forecast of $7.78 billion.

Operational efficiency gains helped drive a 20.8% year-over-year increase in adjusted EBITDA to $157 million, reflecting progress in the company’s ongoing efforts to optimize its role as a supplier partner. Improvements in margins were a key factor contributing to the outperformance.

United Natural Foods continues to project fiscal 2025 revenue between $31.3 billion and $31.7 billion, and reiterated its adjusted earnings per share forecast of $0.70 to $0.90.