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SYSCO Earnings Cheat Sheet for the Second Quarter
Results: Net income for the food wholesaler fell to $250.1 million (43 cents per share) vs. $258.2 million (44 cents per share) a year earlier. This is a decline of 3.1% from the year earlier quarter.
Revenue: Rose 9.2% to $10.24 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: SYSCO Corporation reported adjusted net income of 46 cents per share. By that measure, the company beat the mean estimate of 44 cents per share. Analysts were expecting revenue of $10.05 billion.
Quoting Management: “Our case growth trends improved in the latter part of the quarter as we were well positioned to benefit from the favorable market conditions our customers experienced during the holiday season,” said Bill DeLaney, Sysco’s president and chief executive officer. “Adjusted operating earnings growth in our core business was modest however, as product cost inflation continued at historically high levels and pricing pressure remained acute.”
Revenue has risen the past four quarters. Revenue increased 8.6% to $10.59 billion in the first quarter. The figure rose 0.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.1% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 55 cents versus a mean estimate of net income of 52 cents per share.
Net income has dropped 0.4% year over year on average across the last five quarters. Performance was hurt by a 3.8% decline in the second quarter of the last fiscal year from the year earlier quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 46 cents a share to 44 cents over the last ninety days. The average estimate for the fiscal year is $1.95 per share, down from $2.02 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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