- Sysco’s adjusted earnings per share (EPS) for the second quarter were 93 cents, exceeding estimates of 92 cents and higher than the previous year’s 89 cents.
- The company reported adjusted EBITDA of $969 million, which is a 4.5% increase year-over-year, though below the estimated $979.5 million.
- Total sales reached $20.2 billion, a 4.7% increase from last year, surpassing the estimate of $20.1 billion.
- US Foodservice Operations reported sales of $14.04 billion, slightly under the estimated $14.1 billion.
- International Foodservice Operations saw sales of $3.73 billion, just above the $3.72 billion estimate.
- Sygma’s sales were $2.12 billion, exceeding the estimate of $2.02 billion.
- Adjusted operating income was $783 million, marking a 5.1% increase year-over-year, and above the estimate of $778 million.
- Gross profit stood at $3.7 billion, up 5.3% year-over-year, beating the estimate of $3.63 billion.
- The gross margin was slightly down at 18.1% compared to last year’s 18.2%, in line with the estimate.
- US Foodservice Operations adjusted operating income was $859 million, a slight increase from last year, exceeding the estimate of $847.6 million.
- International Foodservice Operations achieved a significant 28% year-over-year increase in adjusted operating income to $129 million, beating the estimate of $118.7 million.
- Sygma reported an operating income of $19 million, a 16% increase from the previous year, slightly below the estimated $19.7 million.
- Gross profit for International Foodservice Operations increased by 7.3% to $760 million, above the estimate of $741.1 million.
- Sygma’s gross profit rose 9.8% to $163 million, surpassing the estimated $156.8 million.
- The company plans to increase cash return to shareholders to approximately $2.25 billion in fiscal year 2025, with a share repurchase expected at $1.25 billion and dividends at $1 billion.
- Sysco reiterated its fiscal year 2025 guidance, forecasting sales growth of 4-5% and adjusted EPS growth of 6-7%.
- A positive outlook was shared about their International, SYGMA, and National sales businesses.
- Analyst recommendations include 12 buys and 8 holds, with no sell ratings.
Sysco Corp on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely covering Sysco Corporation’s recent financial performance. In their report titled “Sysco Corporation: The Story Of Focused Geographic and Market Segment Expansion! – Major Drivers,” Baptista Research highlighted Sysco’s first-quarter results for fiscal year 2025. The report notes a 4.4% increase in total revenue to $20.5 billion, supported by a 2.7% rise in U.S. food service volume and moderate inflation. Sysco’s adjusted operating income grew by 2.2%, and adjusted earnings per share increased by 1.9% to $1.09 amidst a complex economic environment.
In another report by Baptista Research titled “Sysco Corporation: These 7 Pivotal Factors Are Driving Their Performance In 2024 & 2025! – Financial Forecasts,” the analysts point out mixed results in Sysco’s Fourth Quarter Fiscal Year 2024 Earnings. Despite challenges, Sysco reported a revenue increase to $79 billion for the fiscal year, showing a 3.3% growth compared to the previous year. This growth was mainly driven by a 3.1% boost in U.S. Foodservice Solutions volume and a modest 0.5% contribution from inflation, indicating the various factors influencing Sysco’s financial performance being closely monitored by analysts.
A look at Sysco Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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
Based on Smartkarma Smart Scores, Sysco Corp has a positive long-term outlook. With a high score in Growth and Dividend, the company shows strong potential for expansion and stable returns for investors. Additionally, the moderate scores in Momentum and Value indicate a steady performance and fair market valuation. Despite a lower score in Resilience, Sysco Corp‘s strategic position in distributing food and related products to the foodservice and lodging industries suggests a resilient business model that could withstand market challenges.
Sysco Corporation’s focus on distributing food and related products to the foodservice industry, along with providing personal care amenities and supplies to the lodging industry, positions it well for long-term growth. With a balanced mix of growth, dividends, and momentum, Sysco Corp offers investors a solid investment opportunity in the food distribution sector. Although improvements in value and resilience could enhance its overall outlook, Sysco Corp‘s core business operations show promise for sustained success in the future.
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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