Categories Consumer, Earnings, Retail

Sysco Q1 profit jumps 17.2% but misses estimates

Sysco Corp. (SYY) reported a 17.2% jump in earnings for the first quarter helped by lower income taxes as well as higher sales from the US Foodservice segment. However, the results missed analysts’ expectations. Following this, the stock fell over 9% in the early trade.

Net income climbed 17.2% to $431 million and earnings jumped 17.4% to $0.81 per share. Non-GAAP earnings soared 22.4% to $0.91 per share.

Sales rose 3.9% to $15.2 billion helped by a 5.6% growth in the US Foodservice Operations sales. Sales from International Foodservice Operations rose 0.6% as foreign exchange negatively impacted sales by 0.4%. Sales from Sygma declined 1.2% while other sales increased 6.2%.

Sysco first quarter 2019 Earnings Infographic
Sysco Q1 2019 Earnings Infographics

Local case volume within U.S. Broadline operations increased 5.2%, of which 3.7% was organic, while total case volume within U.S. Broadline operations grew 5.7%, of which 4.3% was organic.

Sysco continues to see expense challenges in the warehouse and transportation areas of its supply chain, which the company anticipates will persist. The company remains focused on the execution of its strategic priorities, which it believes will serve as the roadmap for additional growth and value creation.

Cash flow from operations was $271.1 million for the first quarter, which was $188.4 million higher compared to the prior year period. Free cash flow was $170.7 million, which was $222.4 million higher compared to the prior year.

Capital expenditures, net of proceeds from sales of plant and equipment, totaled $100.5 million, which was $34.1 million lower compared to the prior year period.

Shares of Sysco opened lower on Monday. The stock has risen over 6% in the year so far and over 14% in the past year.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

Infographic: Key highlights from Campbell Soup Company’s (CPB) Q1 2023 earnings results

Campbell Soup Company (NYSE: CPB) reported first quarter 2023 earnings results today. Net sales increased 15% year-over-year to $2.57 billion. Organic sales growth was 15%. Net earnings attributable to Campbell Soup

Cancer drug maker Felicitex prepares for IPO. Here’s all you need to know

Fewer companies filed for initial public offering this year, compared to 2021 when the market witnessed a record number of IPOs. With only a few weeks left for the year

Chipotle Mexican Grill (CMG): A few points to keep in mind if you have an eye on this restaurant chain

Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) were down 3% on Tuesday. The stock has dropped 13% year-to-date but there is still a positive sentiment in general about its

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