S&P 500 (NYSE:SPY) component SYSCO Corporation (NYSE:SYY) reported net income above Wall Street’s expectations for the third quarter. Sysco Corporation, through its subsidiaries and divisions, is a distributor of food and related products.
SYSCO Earnings Cheat Sheet for the Third Quarter
Results: Net income for the food wholesaler rose to $258.5 million (44 cents/share) vs. $247.6 million (42 cents/share) in the same quarter a year earlier. A rise of 4.4% from the year earlier quarter.
Revenue: Rose 9.6% to $9.8 billion YoY.
Actual vs. Wall St. Expectations: SYY beat the mean analyst estimate of 41 cents/share. Estimates ranged from 39 cents per share to 43 cents per share.
Quoting Management: “We are pleased with our improved performance in the third quarter as both sales and earnings grew over the prior year. Particularly encouraging is our case volume growth in the midst of ongoing product inflation and a sluggish economic recovery,” said Bill DeLaney, Sysco’s president and chief executive officer. “Our leadership team remains highly focused on supporting our customers and improving productivity in all aspects of our business.”
Key Stats: Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 3.8% while the figure dropped three quarters ago.
Over the last five quarters, revenue has increased 7.8% on average year over year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 13.9% from the year earlier quarter.
Competitors to Watch: Nash-Finch Company (NASDAQ:NAFC), Spartan Stores, Inc. (NASDAQ:SPTN), United Natural Foods, Inc. (NASDAQ:UNFI), Synergy Brands, Inc. (SYBR), Core-Mark Holding Co., Inc. (NASDAQ:CORE), AMCON Distributing Co. (AMEX:DIT), G. Willi-Food Intl. Ltd. (NASDAQ:WILC), ConAgra (NYSE:CAG), Kraft (NYSE:KFT), Kellogg (NYSE:K) and SUPERVALU INC. (NYSE:SVU)
Stock Performance: Shares of SYY are up 4.84% to $29.89 from the previous close of $28.51 in pre-market trading.