Upcoming AWS Coverage on US Foods Holding Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 24, 2017 / Active Wall St. announces its post-earnings coverage on Sysco Corp. (NYSE: SYY). The Company reported its third quarter fiscal 2017 financial results on May 08, 2017. The Global food products maker and distributor exceeded sales expectations for the quarter. Register with us now for your free membership at:
http://www.activewallst.com/register/
One of Sysco's competitors within the Food Wholesale space, US Foods Holding Corp. (NYSE: USFD), reported on May 09, 2017, its results for Q1 FY17. AWS will be initiating a research report on US Foods Holding in the coming days.
Today, AWS is promoting its earnings coverage on SYY; touching on USFD. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
For its 13-week third fiscal quarter ended April 01, 2017, Sysco announced that sales increased 12.7% to $13.52 billion compared to sales of $12.00 billion in Q3 FY16, driven both by 3.5% local case growth in its US Broadline business and new sales from the Brakes business, which the Company acquired in July 2016. Excluding the impact of Brakes, the Company's sales increased 2.3% to $12.3 billion for the reported quarter. The Company's revenue numbers surpassed analysts' consensus of $13.06 billion
For Q3 FY17, Sysco's gross profit advanced 18.3% to $2.53 billion compared to gross profit of $2.14 billion in Q1 2016, while gross margin increased 89 basis points to 18.74%. The Company stated that excluding Brakes, gross profit increased 4.3% to $2.2 billion and gross margin increased 34 basis points to 18.20% in the reported quarter. Sysco's operating income for Q1 2017 surged 15.5% to $436 million, while adjusted operating income increased 14.3% to $500 million.
Sysco reported net income of $275.9 million, or $0.44 per share, in Q3 FY17, up from $217.1 million, or $0.38 per share in Q3 FY16. On an adjusted basis, the Company reported earnings of $0.51 per share, matching Wall Street's estimates.
Segment Results
During Q3 FY17, Sysco's sales from the US Foodservice Operations totaled $9.2 billion, an increase of 2.2% compared to the same period last year. The segment's gross profit increased 4.0% on a y-o-y basis to $1.8 billion, while gross margin grew 35 basis points to 19.89%. The US Foodservice Operations Operating income was $689 million in Q3 FY17, up 7.1% on a y-o-y basis. During the reported quarter, local case volume within US Broadline operations grew 3.5%, while total case volume grew 1.8%.
Sysco's International Foodservice Operations sales for Q3 FY17 totaled $2.5 billion compared to $1.3 billion in Q3 FY16. The segment's operating income was $16 million, down $17 million versus the year ago comparable period. Adjusted operating income was $40 million, gaining $7 million, compared to the same period last year. The improvement in both sales and adjusted operating income was primarily attributable to the Brakes Group acquisition.
Capital Spending and Cash Flow
For the first 39 weeks of fiscal 2017, Sysco's capital expenditures, net of proceeds from sales of plant and equipment, totaled $395 million, $46 million higher compared to the same period last year. The Company's cash flow from operations was $1.0 billion for the first 39 weeks of fiscal 2017, which was $36 million higher compared to the same period last year. Free cash flow for the first 39 weeks of fiscal 2017 was $630 million, down $11 million compared to the year ago corresponding period.
Stock Performance
At the closing bell, on Tuesday, May 23, 2017, Sysco's stock slipped 1.31%, ending the trading session at $54.23. A total volume of 3.48 million shares were traded at the end of the day, which was higher than the 3-month average volume of 2.77 million shares. In the last month and previous three months, shares of the Company have advanced 2.59% and 2.81%, respectively. Moreover, the stock surged 12.07% in the previous twelve months. The stock is trading at a PE ratio of 28.60 and has a dividend yield of 2.43%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street