Sysco Corp. (NYSE: SYY)
Sysco Corp. shares surged in early hours of regular trading on Monday, after the company topped Wall Street earnings and revenue expectations for its fiscal fourth-quarter.
The U.S. food supplier said it ended its fiscal full-year year with net earnings of $1.4 billion, representing a rise of 25.2% year-over-year.
The company has finished above analyst per-share earnings estimates three times in the last four quarters. SYY stock added $4.33, or 6.32% to trade at $73.27 thanks to the upbeat quarterly report, surpassing the $71.74 record closing price set on July 26.
The shares have increased nearly 33% in the last year, while the Standard & Poor’s 500 has climbed almost 16%. The stock has risen 13% since the start of 2018.
SYY Earnings & Outlook
Sysco Corp. reported net income of $448.9 million, or $0.85 per share for the quarter to June 30. After stripping out amortization expenses and special items, the company earned $0.94 per share, topping analyst estimate of $0.93 per share from Thompson Reuters.
During the fourth quarter of the previous year, the Houston, Texas-based food supplier had earnings of $305.2 million, or $0.57 per share.
Total sales came in at $15.32 billion, an increase of 6.2% from the year-ago quarter, and ahead of estimates of $15.30 billion. The U.S. foodservice and International foodservice segments generated revenues of $10.4 billion and $2.9 billion, respectively.
For the full year, Sysco had a net income of $1.43 billion, or $2.70 a share, while its net sales totaled to $58.73 billion.
Sysco Corp. CEO Comments
“Overall, I am pleased with our performance in fiscal 2018, which culminated in the successful delivery of our initial three-year plan, including the achievement of our adjusted operating income growth target. As we head into fiscal 2019, we remain confident in our ability to profitably grow the business and accomplish our objectives,” commented Sysco President and Chief Executive Officer Tom Bené.
Sysco Corp. Company Profile
Sysco Corp., through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry in the United States, United Kingdom, Canada, France, Bahamas, Mexico, Ireland, Costa Rica, Panama, Sweden, Ireland, Luxembourg, Belgium, and Spain.
The company operates through three segments: U.S. Foodservice Operations, International Foodservice Operations, and SYGMA.
It distributes a line of frozen foods, including meats, seafood, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce.
In addition, the company supplies various non-food items, such as paper products comprising disposable napkins, plates, and cups; tableware consisting of China and silverware; cookware, which include pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies.
Sysco Corp. serves restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues through 324 distribution facilities. The company was founded in 1969 by John F. Baugh. –YahooFinance
