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Sysco (SYY) to Post Q4 Earnings: What Awaits the Stock?

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Sysco Corporation (SYY - Free Report) is likely to register top- and bottom-line growth when it reports fourth-quarter fiscal 2021 numbers on Aug 10. The Zacks Consensus Estimate for revenues is pegged at nearly $14,560 million, which suggests a rise of 64.2% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the bottom line has been steady in the past 30 days at 57 cents per share. The estimate suggests a substantial improvement from the year-ago quarter’s reported figure of a loss of 29 cents. Sysco’s bottom line outpaced the Zacks Consensus Estimate by 10% in the last reported quarter. This marketer and distributor of food and related products has a trailing four-quarter earnings surprise of 13.6%, on average.

Key Aspects to Note

Sysco’s top line, during the fourth quarter, is likely to have gained from recovery in foodservice business, driven by increased demand from restaurants. As pandemic restrictions ease, outdoor dining practices have picked up pace, aiding restaurants to reopen and serve customers. The company is also likely to have gained from continued growth in the SYGMA segment. The unit has been benefitting improved traffic and orders stemming from eased lockdown restrictions in the United States.

Sysco has been undertaking robust efforts to manage its business amid the pandemic. The company is committed toward supporting its customers through initiatives like the Restaurants Rising program and waiving off delivery minimums on regularly scheduled delivery days. The company has also been making enhancement to its supply-chain systems and undertaking investment in technology. Such efforts are likely to have complimented its performance during the quarter in review.

In its last earnings call, management highlighted that pandemic-led lockdowns are likely to persist in some international markets. This is expected to have affected the company’s international foodservice operations to an extent. Moreover, headwinds related to product cost inflation in the U.S. Foodservice unit cannot be ignored.

Sysco Corporation Price, Consensus and EPS Surprise

 

Sysco Corporation Price, Consensus and EPS Surprise

Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote

 

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Sysco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Sysco has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Chewy Inc. (CHWY - Free Report) currently has an Earnings ESP of +20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Darling Ingredients Inc. (DAR - Free Report) currently has an Earnings ESP of +10.09% and a Zacks Rank #2.

Tyson Foods, Inc. (TSN - Free Report) has an Earnings ESP of +11.17% and a Zacks Rank #3, at present.


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