The 10-second takeaway
For the quarter ended March 30 (Q3), Sysco missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Sysco reported revenue of $10.93 billion. The 10 analysts polled by S&P Capital IQ expected revenue of $11.10 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 averaged $0.44 per share. Non-GAAP EPS of $0.40 for Q3 were 18% lower than the prior-year quarter's $0.49 per share. GAAP EPS of $0.34 for Q3 were 23% lower than the prior-year quarter's $0.44 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 17.5%, 30 basis points worse than the prior-year quarter. Operating margin was 3.1%, 110 basis points worse than the prior-year quarter. Net margin was 1.8%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $11.70 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $44.69 billion. The average EPS estimate is $1.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,257 members out of 1,309 rating the stock outperform, and 52 members rating it underperform. Among 441 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 432 give Sysco a green thumbs-up, and nine 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 $31.18.
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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. The Motley Fool recommends 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.