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Sysco Corporation (SYY - Free Report) delivered robust fourth-quarter fiscal 2024 results, wherein the top and bottom lines grew year over year and surpassed the Zacks Consensus Estimate. Shares of the company were up more than 2% in the pre-market trading session on Jul 30.
During the fourth quarter, the company witnessed positive operating leverage for the seventh consecutive time. In fiscal 2024, Sysco returned solid value to shareholders and plans to sustain this momentum with ongoing enhancements in the upcoming fiscal year.
Fiscal 2025 marks the beginning of a three-year financial growth strategy. The company’s plans for steady top and bottom-line improvements are based on sustainable growth, operational excellence and a balanced approach to capital returns.
Sysco anticipates a long-term compounded annual growth rate of 4%-6% for net sales, 6%-8% for adjusted EPS and 9-11% total shareholder returns.
Sysco Corporation Price, Consensus and EPS Surprise
Sysco’s adjusted earnings of $1.39 per share came a penny ahead of the Zacks Consensus Estimate. The bottom line rose 3.7% year over year.
The global food product maker and distributor reported sales of nearly $20.6 billion, which jumped 4.2% year over year. The Zacks Consensus Estimate was pegged at $20.51 billion. Foreign exchange fluctuations adversely impacted sales by 0.1%.
The adjusted gross profit jumped 4.2% to $3.8 billion, and the adjusted gross margin contracted 1 basis point to 18.7%. The upside was mainly driven by elevated volumes, efficient product cost inflation management and progress in the company’s strategic sourcing efforts.
SYY witnessed product cost inflation of 1.6%, measured by the estimated change in product costs, mainly in the meat and poultry categories.
Adjusted operating expenses increased 3.3% year over year to $2.8 billion. The adjusted operating income of $1.1 billion rose 6.4% from the year-ago period’s levels. The adjusted operating margin increased 11 bps to 5.3%.
Sysco’s adjusted EBITDA jumped 5.4% to $1.3 billion.
Segment Details
U.S. Foodservice Operations: In the reported quarter, sales rose 4.9% to $14.4 billion. Local case volumes within U.S. Foodservice grew 0.7%, while total case volumes within U.S. Foodservice increased 3.5%. Segment-adjusted operating income climbed 1.1% to $1.1 billion. The segment’s performance was driven by increased volumes, along with efficient margin management and re-investments.
International Foodservice Operations: The segment continued its growth record, with sales advancing 3.8% to $3.8 billion. Foreign exchange fluctuations positively impacted the segment’s sales by 0.7%. On a constant-currency (cc) basis, sales advanced 4.5%. Adjusted operating income grew 13.1% to $164 million.
SYGMA’s sales came in at $2,004 million, up 2% year over year.
Meanwhile, the Other segment’s sales decreased 5.8% to $310 million.
Other Updates
Sysco ended the quarter with cash and cash equivalents of $696 million, long-term debt of $11,513 million and total shareholders’ equity of nearly $1,860 million.
For fiscal 2024, the company generated cash flow from operations of $3 billion, and free cash flow amounted to $2.2 billion. Capital expenditures, net of proceeds from sales of plant and equipment, amounted to $753 million.
During the fiscal year, Sysco returned $2.2 billion to shareholders through share buybacks worth $1.2 billion and dividends of $1 billion.
Shares of this Zacks Rank #3 (Hold) company have risen 0.3% in the past three months against the industry’s decline of 3.9%.
3 Staple Bets Looking Good
BRF (BRFS - Free Report) , which engages in raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings suggests growth of 7.5% and 210%, respectively, from the year-ago reported figures.
Vital Farms (VITL - Free Report) , which provides pasture-raised products, currently sports a Zacks Rank #1. The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings indicates growth of 24.9% and 66.1%, respectively, from the prior-year reported level.
VITL has a trailing four-quarter average earnings surprise of 102.1%.
Philip Morris (PM - Free Report) , a tobacco company, has a trailing four-quarter earnings surprise of 1.8%, on average. PM currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Philip Morris’ current financial-year sales and earnings indicates growth of 4.4% and 7.8%, respectively, from the prior-year reported level.
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Sysco (SYY) Shares Rise on Q4 Earnings Beat & Revenue Growth
Sysco Corporation (SYY - Free Report) delivered robust fourth-quarter fiscal 2024 results, wherein the top and bottom lines grew year over year and surpassed the Zacks Consensus Estimate. Shares of the company were up more than 2% in the pre-market trading session on Jul 30.
During the fourth quarter, the company witnessed positive operating leverage for the seventh consecutive time. In fiscal 2024, Sysco returned solid value to shareholders and plans to sustain this momentum with ongoing enhancements in the upcoming fiscal year.
Fiscal 2025 marks the beginning of a three-year financial growth strategy. The company’s plans for steady top and bottom-line improvements are based on sustainable growth, operational excellence and a balanced approach to capital returns.
Sysco anticipates a long-term compounded annual growth rate of 4%-6% for net sales, 6%-8% for adjusted EPS and 9-11% total shareholder returns.
Sysco Corporation Price, Consensus and EPS Surprise
Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote
Quarter in Detail
Sysco’s adjusted earnings of $1.39 per share came a penny ahead of the Zacks Consensus Estimate. The bottom line rose 3.7% year over year.
The global food product maker and distributor reported sales of nearly $20.6 billion, which jumped 4.2% year over year. The Zacks Consensus Estimate was pegged at $20.51 billion. Foreign exchange fluctuations adversely impacted sales by 0.1%.
The adjusted gross profit jumped 4.2% to $3.8 billion, and the adjusted gross margin contracted 1 basis point to 18.7%. The upside was mainly driven by elevated volumes, efficient product cost inflation management and progress in the company’s strategic sourcing efforts.
SYY witnessed product cost inflation of 1.6%, measured by the estimated change in product costs, mainly in the meat and poultry categories.
Adjusted operating expenses increased 3.3% year over year to $2.8 billion. The adjusted operating income of $1.1 billion rose 6.4% from the year-ago period’s levels. The adjusted operating margin increased 11 bps to 5.3%.
Sysco’s adjusted EBITDA jumped 5.4% to $1.3 billion.
Segment Details
U.S. Foodservice Operations: In the reported quarter, sales rose 4.9% to $14.4 billion. Local case volumes within U.S. Foodservice grew 0.7%, while total case volumes within U.S. Foodservice increased 3.5%. Segment-adjusted operating income climbed 1.1% to $1.1 billion. The segment’s performance was driven by increased volumes, along with efficient margin management and re-investments.
International Foodservice Operations: The segment continued its growth record, with sales advancing 3.8% to $3.8 billion. Foreign exchange fluctuations positively impacted the segment’s sales by 0.7%. On a constant-currency (cc) basis, sales advanced 4.5%. Adjusted operating income grew 13.1% to $164 million.
SYGMA’s sales came in at $2,004 million, up 2% year over year.
Meanwhile, the Other segment’s sales decreased 5.8% to $310 million.
Other Updates
Sysco ended the quarter with cash and cash equivalents of $696 million, long-term debt of $11,513 million and total shareholders’ equity of nearly $1,860 million.
For fiscal 2024, the company generated cash flow from operations of $3 billion, and free cash flow amounted to $2.2 billion. Capital expenditures, net of proceeds from sales of plant and equipment, amounted to $753 million.
During the fiscal year, Sysco returned $2.2 billion to shareholders through share buybacks worth $1.2 billion and dividends of $1 billion.
Shares of this Zacks Rank #3 (Hold) company have risen 0.3% in the past three months against the industry’s decline of 3.9%.
3 Staple Bets Looking Good
BRF (BRFS - Free Report) , which engages in raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings suggests growth of 7.5% and 210%, respectively, from the year-ago reported figures.
Vital Farms (VITL - Free Report) , which provides pasture-raised products, currently sports a Zacks Rank #1. The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings indicates growth of 24.9% and 66.1%, respectively, from the prior-year reported level.
VITL has a trailing four-quarter average earnings surprise of 102.1%.
Philip Morris (PM - Free Report) , a tobacco company, has a trailing four-quarter earnings surprise of 1.8%, on average. PM currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Philip Morris’ current financial-year sales and earnings indicates growth of 4.4% and 7.8%, respectively, from the prior-year reported level.