The 10-second takeaway
For the quarter ended March 31 (Q3), Sysco met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share didn't move.
Margins dropped across the board.
Sysco tallied revenue of $10.5 billion. The nine analysts polled by S&P Capital IQ expected revenue of $10.46 billion on the same basis. GAAP-reported sales were 7.6% higher than the prior-year quarter's $9.76 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.44 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.8%, 80 basis points worse than the prior-year quarter. Operating margin was 4.2%, 20 basis points worse than the prior-year quarter. Net margin was 2.5%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.12 billion. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $42.18 billion. The average EPS estimate is $1.98.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,267 members rating the stock outperform and 50 members rating it underperform. Among 405 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 397 give Sysco a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sysco is hold, with an average price target of $30.22.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Sysco. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.