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Sysco's Q1 Earnings Coming Up: Here's What You Should Know

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Sysco Corporation (SYY - Free Report) is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 earnings on Oct. 29. The Zacks Consensus Estimate for net sales is pegged at $20.5 billion, suggesting an increase of 4.2% from the prior-year quarter. The consensus mark for fiscal first-quarter earnings has remained unchanged in the past 30 days at $1.14 per share, indicating growth of 6.5% from the figure reported in the year-ago quarter. SYY has a trailing four-quarter earnings surprise of almost 2%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Consider About SYY’s Upcoming Results

Sysco has been experiencing growth in its Food-Away-From-Home channel, even amid broader market challenges. The company's strategic investments in specialty platforms like FreshPoint and its specialty meat divisions are delivering positive results. Management continues to enhance its market presence through strategic acquisitions, with the recent buyout of Edward Don & Company generating positive synergies.

The company is committed to improving efficiency through supply chain productivity and cost-container strategies. Sysco’s expense management has consistently improved, with operating expenses increasing at a slower pace than revenues. The continuation of these trends bodes well for the to-be-reported quarter.

Yet, Sysco is facing a decline in restaurant traffic, which can be attributed to shifting consumer behaviors, with many customers prioritizing value and choosing more affordable dining options. Competition from local businesses with multiple locations poses an additional threat. These factors raise some concern about Sysco's fiscal first-quarter performance.

Sysco Corporation Price and EPS Surprise

Sysco Corporation Price and EPS Surprise

Sysco Corporation price-eps-surprise | Sysco Corporation Quote

Earnings Whispers for Sysco

Our proven model doesn’t conclusively predict an earnings beat for Sysco this time around. 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 the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SYY carries a Zacks Rank #2 and has an Earnings ESP of 0.00%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these, too, have the correct combination to beat on earnings this time around.

Clorox (CLX - Free Report) currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.62 billion, which indicates an increase of 17.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.36 per share indicates growth of 177.6% from the year-ago quarter’s levels. CLX has a trailing four-quarter earnings surprise of 122.9%, on average.

Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.96% and a Zacks Rank #3. The company is expected to register top-and-bottom-line growth when it reports third-quarter 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $5 billion, suggesting a rise of 1.9% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged at 88 cents per share in the past 30 days. The consensus mark for CL’s earnings indicates growth of 2.3% from the year-ago quarter’s reported number. CL has delivered an earnings surprise of 4.8%, on average, in the trailing four quarters.

Mondelez International (MDLZ - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank of 3 at present. MDLZ is likely to register top-and bottom-line growth when it releases second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.1 billion, implying a rise of 0.4% from that reported in the year-ago quarter.

The consensus estimate for Mondelez’s quarterly earnings has been unchanged in the past 30 days at 84 cents per share, indicating growth of 2.4% from the year-ago quarter’s reported number. MDLZ has a trailing four-quarter average earnings surprise of 7.8%.

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