Sysco Earnings: Everything You Must Know Now

Sysco Corp. (NYSE:SYY) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Sysco Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 9.09% to $0.5 in the quarter versus EPS of $0.55 in the year-earlier quarter.

Revenue: Rose 5.03% to $11.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sysco Corp. reported adjusted EPS income of $0.5 per share. By that measure, the company missed the mean analyst estimate of $0.54. It missed the average revenue estimate of $11.62 billion.

Quoting Management: “Fiscal year 2013 was a year of transition for Sysco where we made good progress on our multi-year business transformation initiatives. With that said, our financial results announced this morning fell short of our expectations as weak restaurant traffic continued to challenge many of our customers,” said Bill DeLaney, Sysco’s president and chief executive officer. “While overall sales grew acceptably by about 5 percent for both the fourth quarter and full fiscal year and our cost per case metrics improved as the year progressed, we were unable to grow our gross profit at planned levels due in part to ongoing competitive pressures and a shift in customer mix. Looking forward to fiscal 2014, our earnings performance trends should gradually improve as we realize more of the benefits of our business transformation initiatives and further leverage the capabilities of both our strengthened senior management team and our 48,000 customer focused associates.”

Key Stats (on next page)…

Revenue increased 6.18% from $10.93 billion in the previous quarter. EPS increased 25% from $0.40 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.52 and has not changed. For the current year, the average estimate has moved down from a profit of $1.85 to a profit of $1.83 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)