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Sysco Q1 Earnings on the Horizon: Essential Insights for Investors
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Key Takeaways
Sysco's Q1 fiscal 2027 revenues are expected to rise 4.9% to $22.2 billion, with EPS up 1.7% to $1.17.
U.S. Foodservice growth, customer gains and international expansion are likely to support Sysco's Q1 sales.
Sysco's brand expansion and AI360 tools may aid growth, while weak restaurant traffic and costs pose risks.
Sysco Corporation (SYY - Free Report) is likely to witness both top and bottom-line growth when it reports first-quarter fiscal 2027 earnings on Nov. 3. The Zacks Consensus Estimate for revenues is pegged at $22.2 billion, indicating a 4.9% rise from the prior-year quarter’s reported figure.
The consensus mark for earnings has moved up a penny in the past seven days to $1.17 per share, which implies a 1.7% increase from the figure reported in the year-ago quarter. SYY has a trailing four-quarter earnings surprise of about 1%, on average.
Sysco Corporation Price, Consensus and EPS Surprise
Factors Likely to Influence SYY’s Upcoming Results
Sysco’s fiscal first-quarter performance is likely to have been supported by continued momentum in its core U.S. Foodservice business. Improving local customer volumes, healthy new customer wins and better customer retention are likely to have aided sales. Strength across healthcare, travel, hospitality and foodservice management customers might have further supported performance, despite continued softness in national restaurant traffic. The Zacks Consensus Estimate indicates an increase of 4.5% in U.S. Foodservice Operations revenues.
Its International Foodservice Operations are also likely to have contributed positively, supported by healthy local case volumes, expanded supply-chain capacity and increased availability of Sysco-branded products. The business has also been benefiting from increased sales headcount and improved technology capabilities, which are likely to have supported customer engagement, volume growth and operating efficiency. The Zacks Consensus Estimate indicates an increase of 4.9% in International Foodservice Operations revenues.
Its growing focus on Sysco Brand products is likely to have provided additional support. Expansion of its value-tier assortment, particularly Sysco Reliance offerings, and improved pricing strategies might have encouraged greater adoption of private-label products. Meanwhile, AI360 selling tools, including the Swap & Save feature, are likely to have improved customer penetration and sales productivity. Continued improvements in warehouse operations, delivery routing and supply-chain efficiency might have further supported profitability.
However, the fiscal first quarter's performance might have faced pressure from a challenging restaurant industry environment. Weak customer traffic at national restaurant chains and cautious consumer spending on dining out might have constrained volume growth. Elevated fuel and inbound transportation costs, along with food inflation, might have weighed on gross margins. Additionally, an unfavorable year-over-year tax-rate comparison might have pressured earnings.
Earnings Whispers for SYY
Our proven model conclusively 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 odds of an earnings beat, which is the case here.
Sysco carries a Zacks Rank #3 and has an Earnings ESP of +2.46% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for BJ’s Wholesale Club’s upcoming quarter’s earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. The consensus estimate for quarterly revenues is pegged at $5.9 billion, which indicates an increase of 11.1% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 4.8%, on average.
The Hershey Company (HSY - Free Report) has an Earnings ESP of +0.30% and currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $2.12, implying a 63.1% year-over-year decline.
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.3 billion, which indicates an increase of 2.3% from the figure reported in the prior-year quarter. HSY has a trailing four-quarter earnings surprise of 21.8%, on average.
General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +0.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for General Mills’ upcoming quarter’s EPS is pegged at 96 cents, implying a 12.7% year-over-year decrease.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which indicates a decrease of 2.8% from the figure reported in the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 3.6%, on average.
View the Zacks #1 Rank List
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Sysco Q1 Earnings on the Horizon: Essential Insights for Investors
Key Takeaways
Sysco Corporation (SYY - Free Report) is likely to witness both top and bottom-line growth when it reports first-quarter fiscal 2027 earnings on Nov. 3. The Zacks Consensus Estimate for revenues is pegged at $22.2 billion, indicating a 4.9% rise from the prior-year quarter’s reported figure.
The consensus mark for earnings has moved up a penny in the past seven days to $1.17 per share, which implies a 1.7% increase from the figure reported in the year-ago quarter. SYY has a trailing four-quarter earnings surprise of about 1%, on average.
Sysco Corporation Price, Consensus and EPS Surprise
Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote
Factors Likely to Influence SYY’s Upcoming Results
Sysco’s fiscal first-quarter performance is likely to have been supported by continued momentum in its core U.S. Foodservice business. Improving local customer volumes, healthy new customer wins and better customer retention are likely to have aided sales. Strength across healthcare, travel, hospitality and foodservice management customers might have further supported performance, despite continued softness in national restaurant traffic. The Zacks Consensus Estimate indicates an increase of 4.5% in U.S. Foodservice Operations revenues.
Its International Foodservice Operations are also likely to have contributed positively, supported by healthy local case volumes, expanded supply-chain capacity and increased availability of Sysco-branded products. The business has also been benefiting from increased sales headcount and improved technology capabilities, which are likely to have supported customer engagement, volume growth and operating efficiency. The Zacks Consensus Estimate indicates an increase of 4.9% in International Foodservice Operations revenues.
Its growing focus on Sysco Brand products is likely to have provided additional support. Expansion of its value-tier assortment, particularly Sysco Reliance offerings, and improved pricing strategies might have encouraged greater adoption of private-label products. Meanwhile, AI360 selling tools, including the Swap & Save feature, are likely to have improved customer penetration and sales productivity. Continued improvements in warehouse operations, delivery routing and supply-chain efficiency might have further supported profitability.
However, the fiscal first quarter's performance might have faced pressure from a challenging restaurant industry environment. Weak customer traffic at national restaurant chains and cautious consumer spending on dining out might have constrained volume growth. Elevated fuel and inbound transportation costs, along with food inflation, might have weighed on gross margins. Additionally, an unfavorable year-over-year tax-rate comparison might have pressured earnings.
Earnings Whispers for SYY
Our proven model conclusively 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 odds of an earnings beat, which is the case here.
Sysco carries a Zacks Rank #3 and has an Earnings ESP of +2.46% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +2.54% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ’s Wholesale Club’s upcoming quarter’s earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. The consensus estimate for quarterly revenues is pegged at $5.9 billion, which indicates an increase of 11.1% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 4.8%, on average.
The Hershey Company (HSY - Free Report) has an Earnings ESP of +0.30% and currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $2.12, implying a 63.1% year-over-year decline.
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.3 billion, which indicates an increase of 2.3% from the figure reported in the prior-year quarter. HSY has a trailing four-quarter earnings surprise of 21.8%, on average.
General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +0.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for General Mills’ upcoming quarter’s EPS is pegged at 96 cents, implying a 12.7% year-over-year decrease.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which indicates a decrease of 2.8% from the figure reported in the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 3.6%, on average.