- Sysco’s adjusted EBITDA for the first quarter was $1.1 billion, matching both the previous year and market estimates.
- Adjusted earnings per share (EPS) increased to $1.15, surpassing both last year’s $1.09 and the estimated $1.12.
- Total sales grew by 3.2% year-over-year to $21.15 billion, slightly above the estimated $21.09 billion.
- US Foodservice Operations reported sales of $14.78 billion, aligning with market expectations.
- International Foodservice Operations achieved sales of $3.97 billion, exceeding the estimate of $3.9 billion.
- Sygma’s sales hit $2.13 billion, slightly higher than the expected $2.11 billion.
- Adjusted operating income rose by 2.9% year-over-year to $898 million, just above the estimate of $894.3 million.
- The International Foodservice Operations saw a 13% increase in adjusted operating income to $147 million, outperforming the $144.7 million estimate.
- Sygma’s operating income surged by 39% year-over-year to $25 million, exceeding the $18.6 million projection.
- Gross profit climbed by 3.9% to $3.90 billion, slightly above the anticipated $3.88 billion.
- The gross margin improved to 18.5%, compared to last year’s 18.3% and ahead of the 18.4% forecast.
- US Foodservice case growth was minimal at 0.1%, down from 2.7% last year, and below the estimated 0.83%.
- Local case growth decreased slightly by 0.2%, compared to an increase of 0.2% last year, but better than the expected decline of 0.4%.
- Sysco remains optimistic about achieving its full-year guidance of 3%-5% sales growth and 1%-3% adjusted EPS growth, despite a $100 million headwind from reduced incentive compensation in fiscal 2025.
- Analyst recommendations include 11 buys, 8 holds, and 1 sell.
Sysco Corp on Smartkarma
On Smartkarma, a platform for independent investment research, analysts from Baptista Research have provided insightful coverage of Sysco Corp. According to their reports, Sysco’s performance in the fourth quarter of fiscal year 2025 exhibited steady progress and strategic advancements. The company surpassed expectations with improved restaurant traffic and specific initiatives, leading to a 2.8% increase in sales to $21.1 billion and a 6.5% growth in adjusted EPS to $1.48. The analysis by Baptista Research suggests a bullish sentiment towards Sysco Corp following these positive developments.
In another report by Baptista Research on Smartkarma, Sysco Corp‘s performance in the third quarter of fiscal year 2025 was discussed. Despite facing challenges such as adverse weather conditions and weakening consumer confidence impacting results, Sysco managed to achieve sales growth and maintain stable earnings per share. However, the overall financial performance did not meet expectations in that quarter. The analysts highlighted how Sysco’s technology and customer integration strategies are aimed at enhancing customer retention and wallet share, indicating a bullish outlook on the company’s long-term prospects.
A look at Sysco Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors considering Sysco Corp for the long term should take note of the Smartkarma Smart Scores. With a strong Dividend score of 4 and Growth score of 4, Sysco Corp demonstrates a promising outlook in terms of generating returns and expanding its operations. Additionally, the Momentum score of 4 suggests that the company is showing positive trends in the market, indicating potential for continued growth.
However, Sysco Corp‘s Value and Resilience scores are comparatively lower at 2. This signifies that the company may be slightly undervalued and could face challenges in maintaining stability during market fluctuations. Overall, with a solid foundation in the foodservice and lodging industries, Sysco Corp‘s positive Dividend, Growth, and Momentum scores bode well for its future prospects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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