We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sysco (SYY) Q4 Earnings & Revenues Top Estimates, View Raised
Read MoreHide Full Article
Sysco Corporation (SYY - Free Report) delivered stellar fourth-quarter fiscal 2021 results, wherein both the top and bottom lines soared year over year and cruised past the Zacks Consensus Estimate. The company has been benefiting from improved trends as certain markets are reopening and curbs are being lifted. In fact, quarterly sales also exceeded the 2019 levels. Robust sales, along with stringent management of inflation and costs, encouraged management to raise its fiscal 2022 earnings guidance.
Management now envisions earnings per share to come in the range of $3.33-$3.53. At its 2021 Investor Day, where Sysco unveiled Recipe for Growth, the company projected earnings per share of $3.23-$3.43 for fiscal 2022. On its fourth-quarter earnings release, management stated that its July sales were robust.
Q4 in Detail
The company posted adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents. The bottom line compared favorably with the year-ago period’s loss of 29 cents per share. This year-over-year surge can be attributed to robust sales and margins.
Sysco Corporation Price, Consensus and EPS Surprise
The global food product maker and distributor reported sales of $16,136.9 million, which soared 82% year over year and beat the Zacks Consensus Estimate of $14,560 million. Sales growth was backed by business recovery, as several markets reopened and curbs were relaxed. Sales jumped 4.3% from the fourth quarter of fiscal 2019. Foreign currency had a favorable impact of 2.9% on the top line.
Gross profit in the quarter surged 86.2% to $2,915.8 million and the gross margin expanded 41 basis points (bps) to 18.1%. This year-over-year upside was fueled by elevated volumes as the pandemic-led limitations continue to be lifted. Foreign currency had a positive impact of 3.2% on gross profit. Adjusted operating income of $605.2 million grew $639.1 million from the year-ago period and the respective margin advanced 413 bps to 3.8%.
Image Source: Zacks Investment Research
Segment Details
U.S. Foodservice Operations: During the reported quarter, segment sales significantly grew 88.4% to $11,518.9 million. Local case volumes within U.S. Broadline operations jumped 74.3% and total case volumes surged 71.4%. Both of these increases reflect organic improvements. Gross profit escalated a whopping 90% to $2,214.8 million and gross margin expanded 17 bps to 19.2%. U.S. Broadline saw a 10.2% product cost inflation, mainly due to meat and poultry categories, as well as paper and disposables.
International Foodservice Operations: Segment sales soared 83.4% to nearly $2,496 million in the quarter. Foreign-exchange fluctuations positively impacted segment sales by 18.1%. On a constant-currency (cc) basis, sales advanced 65.2% to $2,249 million. Gross profit jumped 88.6% to $496 million and gross margin increased 54 bps to 19.9%. At cc, gross profit rose 70.4% to $448.2 million. Currency movements aided the segment’s gross profit by 18.2%.
SYGMA sales advanced 45.3% to $1,873.4 million. Gross profit rose 39.5% to $159.7 million, while the gross margin contracted 35 bps to 8.52%.
Other segment sales more than doubled to $248.6 million, from $101.6 million reported in the year-ago period.
Other Updates
Sysco ended the quarter with cash and cash equivalents of $3,007.1 million, long-term debt of $10,588.2 million and total shareholders’ equity of $1,552.9 million. In fiscal 2021, the company generated cash flow from operations of $1.9 billion and free cash flow amounted to $1.5 billion.
During the fiscal fourth quarter, Sysco continued to witness market share gains, courtesy of new customers. Further, the company progressed with its Recipe for Growth plan; raised its quarterly dividend; managed inflation efficiently; witnessed profit improvement in International operations, and saw better-than-expected sales and cash flow. The company noted that its Greco and Sons buyout is likely to conclude soon.
This Zacks Rank #3 (Hold) stock has dropped 12% in the past three months compared with the industry’s decline of 7.2%.
J&J Snack Foods (JJSF - Free Report) carries a Zacks Rank #2 (Buy), at present, and its bottom line outpaced the Zacks Consensus Estimate by a wide margin in the preceding four quarters, on average.
Darling Ingredients Inc. (DAR - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 29.8%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Sysco (SYY) Q4 Earnings & Revenues Top Estimates, View Raised
Sysco Corporation (SYY - Free Report) delivered stellar fourth-quarter fiscal 2021 results, wherein both the top and bottom lines soared year over year and cruised past the Zacks Consensus Estimate. The company has been benefiting from improved trends as certain markets are reopening and curbs are being lifted. In fact, quarterly sales also exceeded the 2019 levels. Robust sales, along with stringent management of inflation and costs, encouraged management to raise its fiscal 2022 earnings guidance.
Management now envisions earnings per share to come in the range of $3.33-$3.53. At its 2021 Investor Day, where Sysco unveiled Recipe for Growth, the company projected earnings per share of $3.23-$3.43 for fiscal 2022. On its fourth-quarter earnings release, management stated that its July sales were robust.
Q4 in Detail
The company posted adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents. The bottom line compared favorably with the year-ago period’s loss of 29 cents per share. This year-over-year surge can be attributed to robust sales and margins.
Sysco Corporation Price, Consensus and EPS Surprise
Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote
The global food product maker and distributor reported sales of $16,136.9 million, which soared 82% year over year and beat the Zacks Consensus Estimate of $14,560 million. Sales growth was backed by business recovery, as several markets reopened and curbs were relaxed. Sales jumped 4.3% from the fourth quarter of fiscal 2019. Foreign currency had a favorable impact of 2.9% on the top line.
Gross profit in the quarter surged 86.2% to $2,915.8 million and the gross margin expanded 41 basis points (bps) to 18.1%. This year-over-year upside was fueled by elevated volumes as the pandemic-led limitations continue to be lifted. Foreign currency had a positive impact of 3.2% on gross profit. Adjusted operating income of $605.2 million grew $639.1 million from the year-ago period and the respective margin advanced 413 bps to 3.8%.
Image Source: Zacks Investment Research
Segment Details
U.S. Foodservice Operations: During the reported quarter, segment sales significantly grew 88.4% to $11,518.9 million. Local case volumes within U.S. Broadline operations jumped 74.3% and total case volumes surged 71.4%. Both of these increases reflect organic improvements. Gross profit escalated a whopping 90% to $2,214.8 million and gross margin expanded 17 bps to 19.2%. U.S. Broadline saw a 10.2% product cost inflation, mainly due to meat and poultry categories, as well as paper and disposables.
International Foodservice Operations: Segment sales soared 83.4% to nearly $2,496 million in the quarter. Foreign-exchange fluctuations positively impacted segment sales by 18.1%. On a constant-currency (cc) basis, sales advanced 65.2% to $2,249 million. Gross profit jumped 88.6% to $496 million and gross margin increased 54 bps to 19.9%. At cc, gross profit rose 70.4% to $448.2 million. Currency movements aided the segment’s gross profit by 18.2%.
SYGMA sales advanced 45.3% to $1,873.4 million. Gross profit rose 39.5% to $159.7 million, while the gross margin contracted 35 bps to 8.52%.
Other segment sales more than doubled to $248.6 million, from $101.6 million reported in the year-ago period.
Other Updates
Sysco ended the quarter with cash and cash equivalents of $3,007.1 million, long-term debt of $10,588.2 million and total shareholders’ equity of $1,552.9 million. In fiscal 2021, the company generated cash flow from operations of $1.9 billion and free cash flow amounted to $1.5 billion.
During the fiscal fourth quarter, Sysco continued to witness market share gains, courtesy of new customers. Further, the company progressed with its Recipe for Growth plan; raised its quarterly dividend; managed inflation efficiently; witnessed profit improvement in International operations, and saw better-than-expected sales and cash flow. The company noted that its Greco and Sons buyout is likely to conclude soon.
This Zacks Rank #3 (Hold) stock has dropped 12% in the past three months compared with the industry’s decline of 7.2%.
Looking for Solid Food Stocks? Check These
Medifast, Inc. (MED - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 16%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
J&J Snack Foods (JJSF - Free Report) carries a Zacks Rank #2 (Buy), at present, and its bottom line outpaced the Zacks Consensus Estimate by a wide margin in the preceding four quarters, on average.
Darling Ingredients Inc. (DAR - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 29.8%, on average.