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Sysco (SYY) Q3 Earnings In-Line, Sales Beat Estimates

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Sysco Corporation (SYY - Free Report) markets and distributes a range of f006Fod and related products primarily to the foodservice or food-away-from-home industry came out with third-quarter fiscal 2017 results.

Earnings: Sysco’s adjusted earnings of 51 cents per share came in line with the Zacks Consensus Estimate but increased 10.9% year over year.

Sysco Corporation Price, Consensus and EPS Surprise

Sysco Corporation Price, Consensus and EPS Surprise | Sysco Corporation Quote

Investors should also note the recent earnings estimate revisions for Sysco has remained unchanged in the past 30 days. Further, the earnings surprise history was an impressive one. SYY has delivered positive earnings surprises in all the past four quarters, thus delivering an average of 9.3%.

Revenue: Sysco’s revenues of $13.5 billion rose 12.7% year over year and also came ahead of the Zacks Consensus Estimate of $13.1 billion. Excluding Brakes acquisition, it improved 2.3% to $12.3 billion.

Zacks Rank: Currently, Sysco has a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Price: Shares inched up 0.3% in the pre-market trading hours.

Sysco’s growth strategy remains strong and its efforts to accelerate sales and reduce costs are encouraging. The company also remains positive on the acquisition front. It is encouraging that it has delivered higher gross margins in the past one year, after witnessing declining gross margins since the last two fiscal years, despite deflationary pressure. However, Sysco is witnessing soft sales growth due to the unfavorable impact of food cost deflation. Currency headwinds also remain a concern for Sysco.

Check back later for our full write up on this Sysco earnings report later!

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