Sysco Corporation Profit Tops View - But Revenues Miss

Sysco Corporation (NYSE:SYY) early Monday posted mixed second quarter earnings results, as profit topped expectations but revenues were a bit lighter than anticipated.

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The Houston-based food distributor reported adjusted Q2 EPS of $0.58, which was $0.04 better than the Wall Street consensus estimate of $0.54. Revenues rose 11.1% from last year to $13.5 billion, falling just short of analysts’ $13.53 billion view.

Sysco noted that U.S. Foodservice Operations sales for the latest period were $9.1 billion, up 0.5%. International Foodservice Operations sales doubled from year-ago levels to $2.6 billion. Meanwhile, gross margin increased 137 basis points to 19.11%.

The company commented via press release:

“I am pleased with the quality of our second quarter performance, which was driven by disciplined volume growth and sound margin and expense management,” said Bill DeLaney, Sysco chief executive officer. “We are encouraged by our consistently strong financial results over the past two years and are confident that our ongoing focus on supporting the needs of our customers positions us well for future success.”

Sysco Corporation shares fell $0.04 (-0.08%) in premarket trading Monday. Year-to-date, SYY has declined -4.54%, versus a +2.60% rise in the benchmark S&P 500 index during the same period.

SYY currently has a POWR Rating of B (Buy), and is ranked #18 of 62 stocks in the Food Makers category.

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