- Adjusted EPS for 4Q: $1.39, beats estimate of $1.38 and last year’s $1.34.
- Adjusted EBITDA: $1.3 billion, up 8.3% year-over-year, beating estimate of $1.26 billion.
- Total Sales: $20.56 billion, up 4.3% year-over-year, beating estimate of $20.54 billion.
- US Foodservice Operations Sales: $14.41 billion, close to estimate of $14.43 billion.
- International Foodservice Operations Sales: $3.79 billion, slightly below estimate of $3.83 billion.
- Sygma Sales: $2.04 billion, surpassing estimate of $2.01 billion.
- Adjusted Operating Income: $1.08 billion, up 5.9% year-over-year, beating estimate of $1.07 billion.
- US Foodservice Operations Adjusted Operating Income: $1.07 billion, up 0.8% year-over-year, just shy of the $1.1 billion estimate.
- International Foodservice Operations Adjusted Operating Income: $164 million, up 13% year-over-year, beating estimate of $157.4 million.
- Sygma Operating Income: $26 million, beating estimate of $19.5 million.
- Gross Profit: $3.84 billion, up 4.1% year-over-year, slightly below estimate of $3.87 billion.
- US Foodservice Operations Gross Profit: $2.79 billion, up 3.1% year-over-year, below estimate of $2.85 billion.
- International Foodservice Operations Gross Profit: $787 million, up 8.6% year-over-year, above estimate of $775.6 million.
- Sygma Gross Profit: $163 million, up 1.4% year-over-year, above estimate of $158.1 million.
- Gross Margin: 18.7%, unchanged year-over-year, close to estimate of 18.8%.
- US Foodservice Case Growth: 3.5%.
- Local Case Growth: 0.7%.
- Sysco’s CEO, Kevin Hourican, credits the talented team for the company’s leadership in the Food Away From Home distribution business.
- Analyst Recommendations: 11 buys, 8 holds, and 0 sells.
Sysco Corp on Smartkarma
Analysts at Smartkarma, such as Baptista Research, are closely following Sysco Corp and providing valuable insights on the company’s performance. According to Baptista Research‘s report “Sysco Corporation: A Tale Of Improved Profitability Through Strategic Sourcing! – Major Drivers,” Sysco reported a sequential improvement in restaurant foot traffic during Q3 2024. The company’s 2.9% case growth enabled a profitable market share increase, showcasing strong earnings growth despite a challenging volume environment.
In another report by Baptista Research titled “Sysco Corporation: The Power Of Proximity & Scale Taking Them Forward? – Major Drivers,” analysts highlight Sysco’s strong performance in a growth industry where size and scale are crucial. The company’s double-digit earnings per share growth was driven by volume growth, margin management, and expense control. With positive momentum from the first half of the year, Sysco is optimistic about expanding in the second half and maintaining growth expectations for both sales and earnings per share.
A look at Sysco Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have rated Sysco Corp based on various factors that indicate its long-term outlook. The company has received a strong score of 5 in Growth, reflecting positive expectations for potential expansion and development opportunities over time. This suggests that Sysco Corp is well-positioned to increase its market presence and enhance its business operations in the future.
However, other factors such as Value with a score of 2, Resilience with a score of 2, and Momentum with a score of 3 depict a mixed outlook for Sysco Corp. While the company may not be considered undervalued in the current market, its resilience and momentum indicate moderate stability and a certain level of market activity. In terms of Dividend, Sysco Corp holds a score of 3, implying a moderate dividend outlook for investors seeking income from their investments.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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