Shares of Performance Food Group Company (NYSE:PFGC), a marketer and distributor of food and food-related products across the United States, were trading 11% lower as of 11 a.m. EDT on Wednesday after the company missed on fourth-quarter earnings and gave an uninspiring outlook.
Revenue increased 3.7% to $4.59 billion during the fourth quarter, shy of analysts' estimates calling for $4.66 billion. Adjusted earnings per share checked in at $0.53, also shy of analysts' estimates, which called for $0.59.
Although the fourth-quarter results fell short of estimates, it wasn't all bad. Gross profit improved 6.4%, and the company produced strong cash flow driven by improved operating profit, better capital management, and lower taxes. For fiscal 2018, the company generated $367 million in cash flow from operating activities, a $165.3 million increase over the prior year.
In a press release, CEO George Holm said: "Our business generated double-digit earnings growth and strong cash flow resulting in full-year results in line with our expectations. Vistar [a distributor of convenience/vending foods] had an exceptional year, as the strategic investments we made 18 months ago paid dividends in the fourth quarter and will fuel growth in the coming years."
With fiscal 2018 in the books, analysts then turned their attention to fiscal 2019 guidance. Management expects adjusted EPS in the range of $1.72 to $1.82, well below analysts' estimates of $1.91.