Sysco Corporation (SYY - Free Report) is scheduled to release first-quarter fiscal 2020 results on Nov 4. This provider of food and related products delivered a positive earnings surprise of 2.8% in the last reported quarter and outperformed the Zacks Consensus Estimate by average of 4.7% in the trailing four quarters.
Let’s see what’s in store for the company this time around.
What to Expect?
The Zacks Consensus Estimate for first-quarter earnings has been stable over the past 30 days at 97 cents. This suggests an increase of 6.6% from the year-ago period’s reported figure. The consensus mark for revenues is $15,535 million, indicating a rise of 2.1% from the figure reported in the year-ago quarter.
Factors at Play
Sysco’s first quarter is likely to have seen solid local case volumes in the U.S. Foodservice unit, which have been rising for more than 20 successive quarters. We expect the company’s focus on enhancing assortments, innovation, ensuring food safety and revitalizing brands to have yielded positive results in the first quarter. Also, acquisitions of sister firms J & M Wholesale Meats and Imperio Foods (in April) are likely to have contributed to Sysco’s first-quarter performance.
Though increased operating costs may have dampened Sysco’s bottom line, its solid cost-saving efforts are likely to have cushioned the quarterly performance. Apart from this, volatile currency movements have been a concern.
What the Zacks Model Unveils
Our proven model does not 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. But that’s not the case here.
Sysco has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +7.87% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tyson Foods (TSN - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #2.
Hostess Brands (TWNK - Free Report) has an Earnings ESP of +5.41% and a Zacks Rank #3.
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