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What Awaits Sysco (SYY) as It Readies for Q1 Earnings Release?
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Sysco Corporation (SYY - Free Report) is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 earnings on Oct 31. The Zacks Consensus Estimate for revenues is pegged at $19.7 billion, suggesting a rise of nearly 3% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.02 per share. This calls for growth of 5.2% from the year-ago quarter’s reported figure. SYY has a trailing four-quarter negative earnings surprise of 1.8%, on average.
Factors to Note
Sysco has been benefiting from its focus on the Recipe for Growth plan, which revolves around five strategic pillars. These include enhancing customers’ experience via digital tools. Further, the company is focused on improving the supply chain to cater to customers efficiently and consistently with better delivery and omnichannel inventory management.
Next, Sysco aims at providing customer-oriented merchandising and marketing solutions to augment sales. The company also targets team-based selling, with an emphasis on important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments and sponsoring investments via cost-saving initiatives. Sysco expects the Recipe for Growth plan to drive top-and-bottom-line growth in fiscal 2024, which bodes well for the quarter under review.
Sysco Corporation Price, Consensus and EPS Surprise
Apart from this, Sysco’s diversified customer types, product categories and geographies have been working well. The company 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. These upsides, along with efforts to strengthen the distribution network and customer base, are likely to have acted as upsides in the quarter to be reported.
The Zacks Consensus Estimate for first-quarter U.S. Foodservice Operations unit sales is pegged at $13.8 billion, indicating growth from $13.6 billion reported in the year-ago period. The consensus mark for the International Foodservice Operations segment’s sales of $3.8 billion calls for growth from around $3.3 billion reported in the year-ago period.
Sysco has been encountering product cost inflation in the U.S. Foodservice unit for a while now, mainly in the frozen, canned and dry categories. Additionally, the company witnessed slower overall industry market volume growth in the fourth quarter of fiscal 2023.
In fiscal 2024, SYY expects the market to grow at a lower rate than in fiscal 2023. This might have put pressure on volumes. However, supply-chain productivity and overall cost management are likely to have offered respite.
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 carries a Zacks Rank #3 and has an Earnings ESP of -1.28%. 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 three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +2.21% and a Zacks Rank #3. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 8.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Although the Zacks Consensus Estimate for Church & Dwight’s quarterly earnings has moved up by a penny over the past 30 days to 68 cents per share, it suggests a decline of 10.5% from the year-ago quarter’s reported number. CHD delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
The Boston Beer Company (SAM - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank #3. The company is likely to register bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly earnings per share of $4.25 suggests an increase of 11.3% from the year-ago quarter’s levels.
SAM has a trailing four-quarter negative earnings surprise of 74.9%, on average. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly revenues is pegged at $592.9 million, indicating a drop of 0.6% from the figure reported in the prior-year quarter.
Colgate-Palmolive Company (CL - Free Report) currently has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2023 results. The Zacks Consensus Estimate for Colgate-Palmolive’s quarterly revenues is pegged at $4.8 billion, suggesting growth of 8.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 80 cents per share, which indicates 8.1% growth from the year-ago quarter's reported number. CL delivered an earnings surprise of 1.7%, on average, in the trailing four quarters.
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What Awaits Sysco (SYY) as It Readies for Q1 Earnings Release?
Sysco Corporation (SYY - Free Report) is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 earnings on Oct 31. The Zacks Consensus Estimate for revenues is pegged at $19.7 billion, suggesting a rise of nearly 3% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.02 per share. This calls for growth of 5.2% from the year-ago quarter’s reported figure. SYY has a trailing four-quarter negative earnings surprise of 1.8%, on average.
Factors to Note
Sysco has been benefiting from its focus on the Recipe for Growth plan, which revolves around five strategic pillars. These include enhancing customers’ experience via digital tools. Further, the company is focused on improving the supply chain to cater to customers efficiently and consistently with better delivery and omnichannel inventory management.
Next, Sysco aims at providing customer-oriented merchandising and marketing solutions to augment sales. The company also targets team-based selling, with an emphasis on important cuisines. Finally, Sysco is focused on cultivating new capacities, channels and segments and sponsoring investments via cost-saving initiatives. Sysco expects the Recipe for Growth plan to drive top-and-bottom-line growth in fiscal 2024, which bodes well for the quarter under review.
Sysco Corporation Price, Consensus and EPS Surprise
Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote
Apart from this, Sysco’s diversified customer types, product categories and geographies have been working well. The company 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. These upsides, along with efforts to strengthen the distribution network and customer base, are likely to have acted as upsides in the quarter to be reported.
The Zacks Consensus Estimate for first-quarter U.S. Foodservice Operations unit sales is pegged at $13.8 billion, indicating growth from $13.6 billion reported in the year-ago period. The consensus mark for the International Foodservice Operations segment’s sales of $3.8 billion calls for growth from around $3.3 billion reported in the year-ago period.
Sysco has been encountering product cost inflation in the U.S. Foodservice unit for a while now, mainly in the frozen, canned and dry categories. Additionally, the company witnessed slower overall industry market volume growth in the fourth quarter of fiscal 2023.
In fiscal 2024, SYY expects the market to grow at a lower rate than in fiscal 2023. This might have put pressure on volumes. However, supply-chain productivity and overall cost management are likely to have offered respite.
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 carries a Zacks Rank #3 and has an Earnings ESP of -1.28%. 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 three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +2.21% and a Zacks Rank #3. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 8.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Although the Zacks Consensus Estimate for Church & Dwight’s quarterly earnings has moved up by a penny over the past 30 days to 68 cents per share, it suggests a decline of 10.5% from the year-ago quarter’s reported number. CHD delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
The Boston Beer Company (SAM - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank #3. The company is likely to register bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly earnings per share of $4.25 suggests an increase of 11.3% from the year-ago quarter’s levels.
SAM has a trailing four-quarter negative earnings surprise of 74.9%, on average. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly revenues is pegged at $592.9 million, indicating a drop of 0.6% from the figure reported in the prior-year quarter.
Colgate-Palmolive Company (CL - Free Report) currently has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2023 results. The Zacks Consensus Estimate for Colgate-Palmolive’s quarterly revenues is pegged at $4.8 billion, suggesting growth of 8.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 80 cents per share, which indicates 8.1% growth from the year-ago quarter's reported number. CL delivered an earnings surprise of 1.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.