Sysco posted Monday fiscal first-quarter earnings of 67 cents per share on revenue of $14 billion. Analysts had expected 58 cents a share on revenue of $13.9 billion, according to Thomson Reuters consensus estimates.
Sysco attributes the results to the performance of its recent acquired Brakes Group, a U.K.-based food distributor which expanded the company’s international reach.
“I am pleased with our first quarter performance which built upon the favorable results we have achieved over the past several quarters,” said CEO Bill DeLaney in an earnings release.
The company said gross profit increased 20.3 percent to $2.7 billion and adjusted operating income increased 23.8 percent to $627 million. It also said sales in its U.S. food-service operations were $9.5 billion in the first quarter, a 0.8 percent increase compared to the same period last year. U.S. international sales were $2.7 billion in the quarter, compared to $1.4 billion in the same period last year.
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Sysco Corp (NYSE:SYY) stock is currently trading 2.24% below its 52-week-high, 35.84% above its 52-week-low. The 1-year stock price history is in the range of $38.84 – $53.97. Sysco Corp (SYY) has a price to earnings ratio of 32.17 versus Services sector average of 20.03. SYY stock price has outperformed the S&P 500 by 28.3%. The Food Wholesale & Distribution company is currently valued at $29.29 billion, and its share price closed the last trading session at $52.76. The stock has a 50-day moving average of $48.42 and a 200-day moving average of $49.79.
Sysco Corp (SYY) current short interest stands at 22.45 million shares. It has increased by 10% from the same period of last month. Around 5% of the company’s shares, which are float, are short sold. With a 10-days average volume of 3.32 million shares, the number of days required to cover the short positions stand at 6.8 days.
SYY is forecasted to report earnings per share of $0.59 and a revenue of $13.91 billion for the 1st Quarter of the fiscal year 2016. Sysco Corp (SYY) declared last quarter earnings on November 07. The Food Wholesale & Distribution company announced last quarter earnings per share of $0.67 against a consensus Street estimate of $0.59, beating the average estimate by $0.08. The company posted a revenue of $13.97 billion compared to an estimation of $13.91 billion.
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There are currently seventeen analysts that cover Sysco Corp stock. Of those seventeen, four have a Buy rating, ten have a Hold rating and three have a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $50.85.
A recent analyst activity consisted of Barclays who initiated their coverage on the stock with Underweight rating on September 23. Barclays fixed their price target at $48. This corresponds to a 9.02% downside from the last closing price. On the date of report, the stock closed at $49.23.
Deutsche Bank initiated their coverage on the stock with Hold rating on July 18, and fixed their price target at $52. This corresponds to a 1.44% downside from the last closing price. On the date of report, the stock closed at $51.63.
Another research firm was Bank of America who initiated their coverage on the stock with Neutral rating on June 20. Bank of America fixed their price target at $52. This translates to a 1.44% downside from the last closing price. On the date of report, the stock closed at $49.32.
Sysco Corporation distributes food and related products primarily to the foodservice industry. The Company also distributes personal care guest amenities, housekeeping supplies, room accessories, and textiles to the lodging industry.