The 10-second takeaway
For the quarter ended Sep. 29 (Q1), Sysco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Margins dropped across the board.
Sysco booked revenue of $11.09 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $11.15 billion on the same basis. GAAP reported sales were 4.7% higher than the prior-year quarter's $10.59 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 $0.58. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.51 per share. GAAP EPS of $0.49 for Q1 were 3.9% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.1%, 30 basis points worse than the prior-year quarter. Operating margin was 4.3%, 50 basis points worse than the prior-year quarter. Net margin was 2.6%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.73 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $44.70 billion. The average EPS estimate is $2.01.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,270 members out of 1,321 rating the stock outperform, and 51 members rating it underperform. Among 408 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 401 give Sysco a green thumbs-up, and seven 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 $30.70.
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