Sysco Corporation (NYSE: SYY) reported a 43% jump in earnings for the second quarter of 2020 driven by lower interest expense as well as higher other income. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates.
Net income climbed by 43% to $383.41 million or $0.74 per share. Adjusted earnings increased by 13.2% to $0.85 per share. Net sales rose by 1.8% to $15 billion. Analysts had expected EPS of $0.84 on revenue of $15.09 billion for the second quarter.
The top-line growth was benefited from improved total case volume in its US Foodservice segment, particularly within its independent customers. During the quarter, the company managed expenses well and delivered solid operating income growth.
Looking ahead, the company reaffirmed its fiscal 2018-2020 adjusted earnings per share guidance. The company remained focused on executing against all of its strategic initiatives to strengthen its long-term performance while maintaining its focus on the customer.
The target financial objectives include reaching $600 million of adjusted operating income growth as compared to fiscal 2017, growing earnings per share faster than operating income, and achieving 16% in adjusted return on invested capital for existing businesses.
The objectives through fiscal 2020 enable the company to continue transforming its business while improving the customer experience of doing business with Sysco. The business transformation initiatives allowed Sysco to continue growing its business and capitalize on its strong fundamentals.
For the second quarter, sales from US Foodservice Operations increased by 3.2%. Sales from International Foodservice Operations were flat while it increased by 0.9% on a constant currency basis. Foreign exchange rates negatively affected International Foodservice Operations sales by 0.9% and total Sysco sales by 0.2% during the quarter.
Local case volume within US Broadline operations increased 3.7%, of which 2.5% was organic, while total case volume within US Broadline operations rose 2%, of which 1.3% was organic.
Cash flow from operations was $754.5 million for the first half of fiscal 2020, which was $163.3 million lower than the prior-year period. Free cash flow was $371.4 billion, which was $329.5 million lower than last year, due to a combination of an increase in working capital and higher capital spending. Capital expenditures, net of proceeds from sales of plant and equipment, totaled $383.1 million, which was $166.2 million higher than last year.
Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the
Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3
Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer