Categories AlphaGraphs, Consumer, Earnings

Sysco (SYY) slips to a loss in Q3, misses estimates

Sysco Corporation (NYSE: SYY) reported its financial results for the quarter ended March 31, 2020, on Tuesday before the market opens. The results missed analysts’ expectations.

Sysco slipped to a loss in the third quarter of 2020 from a profit last year due to lower sales and higher operating expenses. The top-line fell by 7% due to the impact of the COVID-19 crisis. Sysco has outlined key plans to ensure business and financial flexibility, while also preparing for the gradual demand recovery that it expects to occur once the pandemic crisis subsides.

Sysco Corp. (SYY) Q3 2020 earnings review

Immediately after the onset of the virus, the company took significant actions to lower expenses. Sysco expects cost reduction realizations to take effect beginning in the fourth quarter. In the fourth quarter of fiscal 2020 alone, the company has removed more than $500 million of expenses from the business, which includes the difficult decision to cut staffing levels by about 33% through a combination of temporary workforce furloughs and permanent reductions in force.

The exit rate of Q3 saw a dramatic decline in volume, sales, and gross profit across all of the business segments as a result of the pandemic. From the low point at the end of March, trends in April have shown sequential weekly improvement that reflects further momentum and upward trajectory. The company expects additional improvement throughout the month of May as certain states allow restaurants to re-open their dining areas.

Past Performance

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

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