Earnings Cheat Sheet: Food Services Giant Sysco Disappoints
Sysco (SYY) is one of the largest food services companies in the US. If you eat at a restaurant, you are more than likely consuming something which filtered through Sysco.
Sales at Sysco jumped nicely last quarter, but investors were not in love with the 8% drop in net income.
Earnings: Decreased 8% to $299 million ($0.51 per share) from $326.2 million ($0.55 per share) y-o-y.
Revenue: Increased 7.4% to $9.8 billion.
Actual versus Wall Street Expectations: SYY was in line with revenue, but Wall Street analysts were expecting earnings of $0.57 a share. (FactSet Researchs).
Notable Stats: Operating income rose 1.8% to $506 million.
SYY had a $39 million increase in tax expenses.
Did You Hear That? “While our overall sales increase and operating expense management were encouraging, we missed our goal for operating income growth, largely due to a decline in gross profit margin and higher pension costs. Our entire leadership team is focused on effectively leveraging sales growth as the fiscal year progresses,” said Bill DeLaney, Sysco’s president and chief executive officer.
Official Company Earnings Release: Read all the details here.
Commentary: Shares of Sysco fell back to their 50 DMA and pierced through their 200 DMA. Shares are also in a slight downtrend, so keep your eye on stability before looking to get long.
Disclosure: No positions.