HOUSTON - Sysco Corporation (NYSE: NYSE:SYY), a global leader in food distribution, reported its financial results for the third fiscal quarter ended March 30, 2024, showing a slight earnings beat but a miss on revenue expectations. The company's adjusted earnings per share (EPS) for the quarter was $0.96, marginally surpassing the analyst consensus of $0.95. However, Sysco's revenue for the quarter was $19.4 billion, falling short of the anticipated $19.74 billion consensus estimate.
Sysco's third-quarter sales saw a 2.7% increase compared to the same period last year, demonstrating the company's ability to grow despite a challenging macroeconomic environment. The U.S. Foodservice Operations segment was a notable contributor to this growth, with sales rising by 3.4% to $13.7 billion. The International Foodservice Operations segment also delivered impressive results, with sales climbing by 4.5% to $3.5 billion, and a significant 12.0% increase in gross profit to $719.7 million.
Sysco's gross profit for the quarter increased by 5.2% to $3.6 billion, and adjusted operating income saw an 8.4% rise to $799.3 million. The company's management highlighted effective cost management and strategic sourcing initiatives as key drivers behind the improved gross profit margins.
Kevin Hourican, Sysco's Chair of the Board and Chief Executive Officer, commented on the results, emphasizing the company's focus on delivering strong profit growth amidst softer sales and case volumes. Hourican attributed the performance to disciplined efforts in gross profit margin management and expense control. He also noted the company's commitment to improving local case volume performance through investments in people, processes, and technology.
Sysco's Chief Financial Officer, Kenny Cheung, expressed confidence in the company's fiscal year 2024 guidance, projecting five to ten percent adjusted EPS growth to $4.20 to $4.40. This guidance reflects the company's optimism about its profit objectives and balanced approach to capital allocation, including a target to return approximately $2.25 billion to shareholders in fiscal year 2024 through share repurchases and dividends.
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