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Sysco's (SYY) Q1 Earnings Upcoming: Key Factors to Note
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Sysco Corporation (SYY - Free Report) is likely to register a top and bottom-line increase from the respective year-ago fiscal quarter’s reading when it reports first-quarter fiscal 2023 earnings on Nov 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $18,634 million, suggesting a rise of 13.2% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 99 cents per share. This indicates a 19.3% jump from the figure reported in the prior-year fiscal quarter.
The renowned food company has a trailing four-quarter earnings surprise of 3.6%, on average. SYY delivered an earnings surprise of 2.7% in the last reported quarter.
Factors to Consider
Sysco has been benefiting from its Recipe for Growth program, which is strengthening the company’s capacities across sales and the supply chain.
The Recipe for Growth program involves five strategic priorities aimed at enabling the company to grow 1.5 times faster than the market by FY24 end. The five strategic pillars include enhancing customers’ experiences via digital tools. In this regard, the company’s Sysco Shop platform and the new pricing software are working well.
Further, the company is focused on improving the supply chain to cater to customers efficiently and consistently with better delivery and omnichannel inventory management.
Sysco aims at providing customer-oriented merchandising and marketing solutions to augment sales. The company also targets having team-based selling, with an emphasis on important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments alongside sponsoring investments via cost-saving initiatives.
The company’s diversified business and gains from acquisitions have also been a driver. The company’s operations are diversified across different customer types, product categories and geographies.
Sysco caters to restaurants of all price-point spectrums and types. It also caters to health care and education facilities alongside travel and recreation facilities in office buildings. Travel and recreation facilities are seeing a continued revival and are likely to be a growth area in the coming years.
Sysco targets growing at 1.35 times the industry in fiscal 2023 and expects top-line growth of at least 10% in the fiscal. Management expects acquisitions to contribute to its growth. These aspects bode well for the quarter under review.
However, the company has been encountering product cost inflation in the U.S. Foodservice unit for a while now.
Management expects inflation in the high single digits in the first quarter. Sysco also expects increased operating costs in fiscal 2023 due to transformation investments and a tough hiring landscape. These may have acted as deterrents in the quarter under review.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Sysco this time. 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, which is not the case here.
Sysco has a Zacks Rank #3 and an Earnings ESP of -2.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering as our model shows that these have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of around 11% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.7 billion, indicating a decline of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s bottom line is pegged at 73 cents per share, suggesting a decline of 39.7% from the year-ago quarter’s reported figure. CLX delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.35% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
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Sysco's (SYY) Q1 Earnings Upcoming: Key Factors to Note
Sysco Corporation (SYY - Free Report) is likely to register a top and bottom-line increase from the respective year-ago fiscal quarter’s reading when it reports first-quarter fiscal 2023 earnings on Nov 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $18,634 million, suggesting a rise of 13.2% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 99 cents per share. This indicates a 19.3% jump from the figure reported in the prior-year fiscal quarter.
The renowned food company has a trailing four-quarter earnings surprise of 3.6%, on average. SYY delivered an earnings surprise of 2.7% in the last reported quarter.
Factors to Consider
Sysco has been benefiting from its Recipe for Growth program, which is strengthening the company’s capacities across sales and the supply chain.
The Recipe for Growth program involves five strategic priorities aimed at enabling the company to grow 1.5 times faster than the market by FY24 end. The five strategic pillars include enhancing customers’ experiences via digital tools. In this regard, the company’s Sysco Shop platform and the new pricing software are working well.
Further, the company is focused on improving the supply chain to cater to customers efficiently and consistently with better delivery and omnichannel inventory management.
Sysco aims at providing customer-oriented merchandising and marketing solutions to augment sales. The company also targets having team-based selling, with an emphasis on important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments alongside sponsoring investments via cost-saving initiatives.
The company’s diversified business and gains from acquisitions have also been a driver. The company’s operations are diversified across different customer types, product categories and geographies.
Sysco caters to restaurants of all price-point spectrums and types. It also caters to health care and education facilities alongside travel and recreation facilities in office buildings. Travel and recreation facilities are seeing a continued revival and are likely to be a growth area in the coming years.
Sysco targets growing at 1.35 times the industry in fiscal 2023 and expects top-line growth of at least 10% in the fiscal. Management expects acquisitions to contribute to its growth. These aspects bode well for the quarter under review.
However, the company has been encountering product cost inflation in the U.S. Foodservice unit for a while now.
Management expects inflation in the high single digits in the first quarter. Sysco also expects increased operating costs in fiscal 2023 due to transformation investments and a tough hiring landscape. These may have acted as deterrents in the quarter under review.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Sysco this time. 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, which is not the case here.
Sysco has a Zacks Rank #3 and an Earnings ESP of -2.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering as our model shows that these have the right combination of elements to beat earnings this season.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +2.02% and a Zacks Rank #3. HSY is likely to register a top-line improvement when it reports third-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of around 11% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.7 billion, indicating a decline of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s bottom line is pegged at 73 cents per share, suggesting a decline of 39.7% from the year-ago quarter’s reported figure. CLX delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.35% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.