Why Sysco Is One of Monday’s Big Earnings Winners
Sysco released solid fiscal fourth-quarter financial results before the markets opened on Monday and shares rallied afterward.
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Sysco Corp. (NYSE: SYY) released its fiscal fourth-quarter financial results before the markets opened on Monday. The company said that it had $0.94 in earnings per share (EPS) and $15.32 billion in revenue, while with consensus estimates from Thomson Reuters had called for $0.93 in EPS and revenue of $15.3 billion. In the same period of last year, Sysco said it had EPS of $0.72 and $14.42 billion in revenue.
During the most recent quarter, U.S. Foodservice operations generated sales of $10.4 billion, an increase of 6.1% year over year, with a gross profit of $2.1 billion. International Foodservice operations had $2.9 billion in net sales, an increase of 7.9%, with a gross profit of $639 million.
Fiscal 2018 marked the completion of Sysco’s initial three-year plan. Throughout the course of the three-year plan, the company accelerated local case growth by 3.0%, achieved adjusted gross profit a compound annual growth rate (CAGR) of 4.2%, and managed adjusted operating expense CAGR to 2.2%.
The company did not offer any guidance for the fiscal first quarter in the report. However, the consensus estimates call for $0.91 in EPS and $15.37 billion in revenue for the quarter.
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Tom Bene, Sysco’s president and CEO, commented:
Overall, I am pleased with our performance in fiscal 2018, which culminated in the successful delivery of our initial three-year plan, including the achievement of our adjusted operating income growth target. As we head into fiscal 2019, we remain confident in our ability to profitably grow the business and accomplish our objectives.
Shares of Sysco were last seen up about 6% at $72.82, with a consensus analyst price target of $67.23 and a 52-week trading range of $50.05 to $74.05.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
