- Sysco’s 1Q adjusted EPS beat estimates at $1.07, up from 97c year over year (y/y).
- The company’s adjusted Ebitda was $1.0 billion, slightly below the estimate of $1.03 billion.
- Sales increased by 2.6% y/y to $19.6 billion, slightly under the estimated $19.74 billion.
- US Foodservice Operations sales were $13.72 billion, falling short of the estimated $13.79 billion.
- International Foodservice Operations sales matched the estimate at $3.68 billion.
- Sygma sales were $1.91 billion, lower than the estimated $1.96 billion.
- Adjusted operating income rose by 11% y/y to $854.3 million, exceeding the estimated $842.1 million.
- US Foodservice Operations adjusted operating income was $953.6 million, a 4.4% increase y/y, and above the estimate of $937.3 million.
- International Foodservice Operations adjusted operating income was $116.2 million, an 8.5% increase y/y, but below the estimated $131.6 million.
- Gross profit was $3.65 billion, a 4.6% increase y/y, and slightly above the estimated $3.62 billion.
- US Foodservice Operations gross profit was $2.68 billion, a 2.8% increase y/y, and slightly over the estimated $2.66 billion.
- International Foodservice Operations gross profit was $732.0 million, a 13% increase y/y, and above the estimated $728.2 million.
- Sygma gross profit was $152.8 million, a 0.7% decrease y/y, and below the estimated $157 million.
- Gross margin was 18.6%, up from 18.2% y/y, and higher than the estimated 18.3%.
- US Broadline Case was 1.6%, lower than the estimated 1.75%.
- Sysco has received 13 buy ratings, 7 hold ratings, and no sell ratings.
Sysco Corp on Smartkarma
Sysco Corporation recently reported mixed results in their quarter, with revenues falling short of analysts’ expectations but above-par earnings. To further their success, Sysco Corporation has partnered with NextEra Energy Resources to devise customized strategies to reduce the company’s carbon emissions. Additionally, despite industry softness in March, Sysco Corporation has achieved strong sales growth throughout the quarter.
According to a research report by Baptista Research, Sysco Corporation is rated a ‘Hold’ with a revised target price. The report states that Sysco Corporation is well-positioned to leverage international growth as a recipe for success. The analyst believes that Sysco Corporation’s U.S. food service business’s Q4 case volume increase will further solidify their top spot in food service distribution.
A look at Sysco Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Sysco Corp is a major supplier of food and other related products to the foodservice industry. According to the Smartkarma Smart Scores, the company is well-positioned for growth, earning a score of 5. However, its value and resilience scores are lower at 2, indicating that the company has some areas of potential improvement. Despite this, the company’s momentum score of 3 indicates that Sysco Corp is still making progress.
Overall, Sysco Corp looks to be in a strong position in the long-term. Its strong growth score and moderate momentum score show that it is well-positioned to continue its success in the future. Its lower scores in value and resilience suggest that the company may need to focus on improving these areas in order to sustain its success in the long-term.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
