The 10-second takeaway
For the quarter ended Dec. 29 (Q2), Sysco met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.
Margins contracted across the board.
Sysco reported revenue of $10.80 billion. The 10 analysts polled by S&P Capital IQ hoped for sales of $10.70 billion on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $10.24 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 $0.40. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.38 for Q2 were 12% lower than the prior-year quarter's $0.43 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 17.8%, 20 basis points worse than the prior-year quarter. Operating margin was 3.5%, 70 basis points worse than the prior-year quarter. Net margin was 2.1%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.06 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $44.59 billion. The average EPS estimate is $1.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,278 members out of 1,328 rating the stock outperform, and 50 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 443 give Sysco a green thumbs-up, and five 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 $30.90.
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