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

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

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