A number of companies from the Zacks Food – Miscellaneous industry have reported results for the June-end quarter. The broader factors impacting results for this quarter include recovery in the foodservice channel, thanks to the favorable away-from-home demand. This can be attributable to the improving traffic at restaurants, cafes and other foodservice locations, with curbs being lifted and vaccinations gathering pace.

Meanwhile, food companies’ retail business channel has been witnessing tough comparisons with the year-ago period’s significant demand surge that resulted from the initial pantry loading due to the pandemic outbreak. While lower than the year-ago period, at-home consumption still remains elevated as a number of Americans have developed cooking and baking at home as a new habit. Companies have been making the most of these trends, supported by their consistent portfolio refinement endeavors like focus on innovation, product upgrades, prudent buyouts and divestitures. Also, food companies are coming up with organic and natural food choices, given consumers’ growing inclination toward health and wellness.

Apart from this, growing online sales are working in favor of a number of food companies, which have been focused on investing toward boosting omnichannel and fulfillment center capabilities. That said, higher costs of inputs, freight and logistics have been putting pressure on margins of several food companies. Some players are also facing disruptions in the supply-chain network. Nevertheless, companies have been undertaking efficient pricing actions to combat this inflationary pressure.

All said, let’s delve deeper into a few food stocks, which are scheduled to release results on Aug 10. These stocks form part of the Zacks Consumer Staples sector. Per the latest Earnings Preview, the total earnings of the Consumer Staples sector are anticipated to advance 15.5%, on revenue growth projection of 18.2%.

According to the Zacks model, 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.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Impact Sysco

Sysco Corporation’s (SYY Quick QuoteSYY - Free Report) fourth-quarter fiscal 2021 performance is likely to have gained from recovery in foodservice business, driven by increased demand from restaurants. The company is also anticipated to have gained from continued growth in the SYGMA segment. The unit has been benefiting from improved traffic and orders stemming from the eased lockdown restrictions in the United States. However, in its last earnings call, management highlighted that the pandemic-led lockdowns are likely to persist in some international markets. Additionally, headwinds related to product cost inflation in the U.S. Foodservice unit cannot be ignored.

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 indicates a substantial improvement from the year-ago quarter’s reported figure of a loss of 29 cents. The company carries a Zacks Rank #3 and has an Earnings ESP of 0.00%, at present. (Read More: Sysco to Post Q4 Earnings: What Awaits the Stock?)

What’s in the Cards for Darling Ingredients?

Darling Ingredients Inc. (DAR Quick QuoteDAR - Free Report) is scheduled to report second-quarter 2021 results. This developer, producer and seller of natural ingredients has been benefiting from its focus on innovation, introducing new products and investments to expand capacity. Darling Ingredients operates through the Feed Ingredients, Food Ingredients and Fuel Ingredients segments.

The Zacks Consensus Estimate for revenues is pegged at $1,089 million, calling for an increase of 28.3% from the prior-year quarter’s reported figure. The consensus mark for earnings has moved up 3.8% over the past 30 days to 82 cents per share, suggesting a major increase from 39 cents reported in the prior-year quarter. Darling Ingredients currently has a Zacks Rank #2 and an Earnings ESP of +10.09%.

What Awaits Aramark?

Aramark (ARMK Quick QuoteARMK - Free Report) is likely to display top- and bottom-line growth in its third-quarter fiscal 2021 results. The company provides food, facilities, as well as uniform services, and operates through Food and Support Services United States; Food and Support Services International; and Uniform and Career Apparel units. It has been gaining from its growth-oriented efforts, such as pursuing prudent buyouts and mergers, as well as undertaking stringent cost discipline. Tough comparisons with the year-ago period in the U.S. Food and Facilities, as well as pandemic-related restrictions in some international regions are a concern.

The Zacks Consensus Estimate for quarterly revenues is pegged at $3,031 million, suggesting an increase of 40.8% from the prior-year period’s reported figure. The consensus mark for earnings is pegged at 2 cents per share, which has remained stable in the past 30 days. This calls for a considerable rise from the loss of 69 cents reported in the prior-year quarter. The company currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%.