Sysco Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sysco (NYSE:SYY) will unveil its latest earnings tomorrow, Monday, February 4, 2013. Sysco, through its subsidiaries and divisions, is a distributor of food and related products.

Sysco Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 41 cents per share, a decline of 10.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 43 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 41 cents during the last month. Analysts are projecting profit to rise by 2% compared to last year’s $1.98.

Last quarter, the company came in at net income of 58 cents per share against a mean estimate of profit of 50 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

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A Look Back: In the first quarter, profit fell 5.3% to $286.6 million (49 cents a share) from $302.7 million (51 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 4.7% to $11.09 billion from $10.59 billion.

Here’s how Sysco traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: Analysts are projecting a rise of 4.4% in revenue from the year-earlier quarter to $10.69 billion.

Stock Price Performance: Between October 31, 2012 and January 29, 2013, the stock price rose 70 cents (2.3%), from $31.07 to $31.77. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 14, 2012, when shares rose for seven straight days, increasing 2.7% (+80 cents) over that span. It saw one of its worst periods between November 1, 2012 and November 8, 2012 when shares fell for six straight days, dropping 5.3% (-$1.68) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.2% in the second quarter of the last fiscal year, 7.6% in the third quarter of the last fiscal year and 5.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 8% in the fourth quarter of the last fiscal year and then again in the first quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 10 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.76 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.78 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.2% to $3.6 billion while assets rose 4.1% to $6.33 billion.

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