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Sysco's Q4 Earnings on the Horizon: What Surprise Awaits Investors?

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Key Takeaways

  • SYY is gaining from strength in U.S. Foodservice, national sales wins and customer retention.
  • International growth is fueled by more sales staff, local assortments and sourcing synergies.
  • Cost savings, efficiency gains and specialty execution support SYY's Q4 bottom-line strength.

Sysco Corporation ((SYY - Free Report) ) is likely to register an increase in its top and bottom lines when it reports fourth-quarter fiscal 2025 earnings on July 29. The Zacks Consensus Estimate for Sysco’s quarterly revenues is pegged at $21 billion, which indicates 2.1% growth from the year-ago quarter.

The consensus mark for earnings has been stable in the past 30 days at $1.40 per share, indicating a rise of 0.7% from the year-ago quarter’s reported figure.

SYY has a trailing four-quarter negative earnings surprise of 2.4%, on average.

Factors to Consider About Sysco’s Upcoming Results

Sysco is gaining from robust strength in its U.S. Foodservice operations, which, along with solid customer retention are likely to contribute to the results. SYY’s expanded distribution capacity and strategic sales initiatives, including the ongoing rollout of the Greco Italian platform, are likely to have aided its performance.

The international segment is likely to have contributed to the upside, supported by increased sales headcount, local assortment expansion and strategic sourcing synergies. On the earnings front, SYY is positioned for bottom-line improvement due to a combination of internal cost-saving measures and operational efficiency gains.

The aforesaid factors, along with Sysco’s dominant market position, diversified customer base, solid execution in high-growth specialty categories and strategic investments across distribution and specialty platforms, are likely to have driven its performance in fourth-quarter fiscal 2025.

However, rising product costs, especially in the dairy and meat categories, have been weighing on the gross margin. Higher headcount investments and supply-chain expenses are likely to have been concerns. Also, soft restaurant traffic due to macroeconomic uncertainty, along with weak consumer confidence and elevated inflation, has been further dampening demand.

Sysco Corporation Price and EPS Surprise

Sysco Corporation Price and EPS Surprise

Sysco Corporation price-eps-surprise | Sysco Corporation Quote

Earnings Whispers for SYY Stock

Our proven model predicts 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 chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Sysco currently has an Earnings ESP of +2.25% and a Zacks Rank of 3.

More Stocks With the Favorable Combination

Here are a few more companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Freshpet ((FRPT - Free Report) ) currently has an Earnings ESP of +40.68% and a Zacks Rank of 3. The company is likely to register growth in the top line when it reports second-quarter 2025 numbers. The consensus mark for revenues is pegged at $267.7 million, which indicates an increase of 13.8% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Freshpet’s quarterly earnings per share of 12 cents implies a sharp rise from the loss per share of three cents reported in the year-ago quarter. The consensus mark has gone down a penny in the past 30 days. FRPT has a trailing four-quarter earnings surprise of 22.3%, on average.

Anheuser-Busch InBev SA/NV ((BUD - Free Report) ), alias AB InBev, has an Earnings ESP of +7.06% and a Zacks Rank of 3 at present. BUD is likely to register bottom-line decline when it releases second-quarter 2025 results. The consensus estimate for AB InBev’s quarterly earnings has risen a couple of cents in the past 30 days to 89 cents per share, implying a drop of 1.1% from the year-ago quarter’s number.

The Zacks Consensus Estimate for quarterly revenues is pegged at $15.3 billion, which implies a drop of 0.5% from the figure reported in the year-ago quarter. BUD delivered an earnings surprise of 10.9%, on average, in the trailing four quarters.

Monster Beverage ((MNST - Free Report) ) currently has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is expected to register growth in its top and bottom lines when it reports second-quarter 2025 results. The Zacks Consensus Estimate for MNST’s quarterly earnings has moved down a penny in the last 30 days to 48 cents per share, indicating 17.1% growth from the year-ago quarter's number.

The consensus estimate for Monster Beverage’s quarterly revenues is pegged at almost $2.1 billion, implying a rise of 9.4% from the figure in the prior-year quarter. MNST reported a negative earnings surprise of 4.1%, on average, in the trailing four quarters.

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