SYSCO Earnings: A Mixed Bag

S&P 500 (NYSE:SPY) component SYSCO Corporation (NYSE:SYY) reported its results for the fourth quarter. Sysco, through its subsidiaries and divisions, is a distributor of food and related products.

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SYSCO Corporation Earnings Cheat Sheet

Results: Net income for SYSCO Corporation fell to $309.3 million (53 cents per share) vs. $336.3 million (57 cents per share) a year earlier. This is a decline of 8% from the year-earlier quarter.

Revenue: Rose 5.9% to $11.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SYSCO Corporation fell short of the mean analyst estimate of 55 cents per share. It beat the average revenue estimate of $10.49 billion.

Quoting Management: “Market conditions remained challenging throughout the year due to increasing product costs and an uneven economic recovery. Nevertheless, we successfully supported our customers and grew our share of market,” said Bill DeLaney, Sysco’s president and chief executive officer. “We are making meaningful progress on our business transformation initiatives and believe the benefits will both improve our financial performance over time and further enhance our leadership position in the industry.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 7.6% to $10.5 billion in the third quarter. The figure rose 9.2% in the second quarter from the year earlier and climbed 8.6% in the first quarter from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 7 cents, and in the second quarter, it was ahead by 2 cents.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 54 cents per share to 48 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $1.91 a share to $1.94 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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