Sysco’s quarterly earnings exceed expectations, driving stock up

  • Sysco stock gains 4.9% on better-than-expected earnings
  • Sales of $19.3 billion in second fiscal quarter
  • U.S. food service segment sales grow 3.2% to $13.5 billion
  • International sales increase by 9.6% to $3.6 billion
  • Sales volume drives gains, not higher prices
  • Gross profit up 4.9% at $3.5 billion
  • Adjusted net income up 11% from a year ago
  • Sales expected to grow to $80 billion in fiscal 2024
  • Capital return to shareholders expected to reach $2.25 billion

Sysco, America’s largest wholesale food distributor for restaurants, reported better-than-expected quarterly earnings, leading to a 4.9% increase in its stock price. The company posted sales of $19.3 billion in its second fiscal quarter, with sales in the U.S. food service segment growing by 3.2% to reach $13.5 billion. International sales also saw a significant increase of 9.6% to $3.6 billion. The gains were driven by higher sales volume rather than higher prices. Sysco’s gross profit grew at a faster rate than its operating expenses, indicating improved profitability. Adjusted net income was up 11% from the previous year, exceeding analysts’ expectations. Looking ahead, Sysco expects sales to reach $80 billion in fiscal 2024, with adjusted EPS projected to rise by 5% to 10%. The company plans to return a total of $2.25 billion to shareholders in the current fiscal year through share repurchases and dividends.

Public Companies: Sysco (N/A)
Private Companies:
Key People: Kevin Hourican (CEO), Kenny Cheung (CFO)

Factuality Level: 8
Justification: The article provides specific financial information about Sysco’s quarterly earnings, sales, and profits, which can be verified. The information is based on the company’s official statements and analyst consensus. There is no obvious bias or opinion presented in the article.

Noise Level: 3
Justification: The article provides a straightforward report on Sysco’s quarterly earnings, sales growth, and future expectations. It includes relevant financial data and quotes from company executives. However, there is some noise in the form of unnecessary information about text-to-speech technology and a request for feedback.

Financial Relevance: Yes
Financial Markets Impacted: Sysco’s better-than-expected quarterly earnings may impact the stock market and investor sentiment towards the food distribution industry.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Sysco’s financial performance and future expectations, indicating its relevance to financial topics.

Reported publicly: www.marketwatch.com