Performance Food Group's (PFGC 2.34%) shares were performing very well over the past few trading sessions, to the point where they were up by nearly 12% in price week to date as of early Friday morning. That's according to data compiled by S&P Global Market Intelligence. The main reason why wasn't exactly a mystery -- the comestibles company posted a very encouraging quarterly earnings report.
A convincing earnings beat
Performance served up its fiscal fourth-quarter results well before market open on Tuesday, revealing that its net sales rose by more than 2% to $15.2 billion for the period. Net income saw a more dramatic increase, rising by almost 11% to $166.5 million. On a per-share, non-GAAP (adjusted) basis the difference was even starker -- net income landed at $1.45, against fiscal fourth-quarter 2023's $1.14.
With those numbers, Performance missed narrowly on net sales. Analysts tracking the stock were collectively expecting nearly $15.3 for that line item. However, the company's adjusted profitability nicely topped expectations, as the average prognosticator estimate was only $1.37 per share.
The company plans to grow at least partially though acquisitions. The morning of its earnings announcement it also said that it intended to acquire Florida-based food service distributor Cheney Brothers. The price is roughly $2.1 billion, which will be paid fully in cash, and the deal is expected to close in calendar 2025.
NYSE: PFGC
Key Data Points
$15 billion-plus expected in fiscal 2025
Performance also proffered guidance for the entirety of its fiscal 2025. For the period, it is modeling net sales of $15.2 billion to $15.5 billion. This should filter down into adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $400 million to $420 million. As with the second-quarter top-line figure, that range doesn't quite reach the average analyst estimate -- in this case the collective pundit projection is $15.57 billion.
