Categories AlphaGraphs, Consumer, Earnings

Sysco Q2 profit drops 5.9% but beats estimates

Sysco Corp. (SYY) reported a 5.9% drop in earnings for the second quarter due to higher costs and expenses. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates. Following this, the stock inched up over 2% in the premarket session.

Net income fell 5.9% to $267.4 million and earnings dropped 5.6% to $0.51 per share. Non-GAAP earnings decreased 4% to $0.75 per share.

Sales rose 2.5% to $14.77 billion helped by a 4.2% growth in the US Foodservice Operations sales. Sales from International Foodservice Operations rose 0.8% as foreign exchange negatively impacted sales by 0.7%. Sales from Sygma declined 5.9% while other sales increased by 10.2%.

Sysco second quarter 2019 earnings snapshot
Sysco Q2 2019 Earnings Infographic

Local case volume within U.S. Broadline operations increased 3.3%, of which 2.4% was organic, while total case volume within U.S. Broadline operations grew 2.9%, of which 2% was organic.

Sysco continues to invest in its business, particularly in its international segment. The company continues to manage costs and anticipates seeing additional benefit from its cost savings initiatives in the second half of this fiscal year. Sysco recently implemented organizational and executive leadership changes that result in an approximate 10% reduction in salaried corporate support positions.

Also read: Sysco second quarter 2019 earnings conference call transcript

Cash flow from operations was $917.8 million for the first 26 weeks of fiscal 2019, which was $15.4 million lower compared to the prior year period. Free cash flow was $700.9 million, which was $22.4 million higher compared to the prior year.

Capital expenditures, net of proceeds from sales of plant and equipment, totaled $216.9 million, which was $37.8 million lower compared to the prior year period.

Shares of Sysco ended Friday’s regular session down 0.44% at $63.57 on the NYSE. The stock has risen over 3% in the past year while it has fallen over 10% in the past three months.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Kroger (KR) looks set to start 2023 with new vigor. Is the stock a buy?

The retail environment has witnessed many changes in customers’ shopping behavior lately, especially after the COVID outbreak. With inflation putting pressure on personal finances, there appears to be a new

Dollar General (DG): Five takeaways from the discount store’s Q3 earnings report

Shares of Dollar General Corporation (NYSE: DG) were up over 2% on Friday, a day after the company delivered mixed results for the third quarter of 2022 and lowered its

Salesforce stock hit by weak guidance, co-CEO’s exit. What next?

For technology stocks, 2022 has been a challenging year, with companies losing significant market value amid prolonged stock selloff. In that respect, Salesforce, Inc. (NYSE: CRM) is among the worst-affected

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top