HOUSTON, TX - I think it is best to let the numbers speak for themselves. This week, the Sysco Corporation released financial results for its 13-week third fiscal quarter, which ended March 30, 2019 showing strong improved year-over-year growth and in line with the company's expectations. A noteable highlight of the financial release: Sysco’s net earnings were up 33.3 percent to $440.1 million versus last year, according to the company.
As NASDAQ reports, Sysco’s quarterly earnings of $0.79 per share beat the Zacks Consensus Estimate of $0.70 per share—compared to earnings of $0.67 per share a year ago.
“Our results for the quarter show strong improved year-over-year growth and are in line with our expectations,” Tom Bené, Sysco’s Chairman, President and Chief Executive Officer. “Our continued focus on profitable growth and supporting our customers at a high level, balanced with managing expenses well, allowed us to deliver solid operating income growth this quarter.”
Other notable features of the recently release financials according to the company include:
Third Quarter Fiscal 2019 Highlights:
- Sales increased 2.2% to $14.7 billion
- Gross profit increased 2.9% to $2.8 billion; gross margin increased 14 basis points
- Operating income increased 9.8% to $529.6 million; adjusted¹ operating income increased 16.6% to $620.2 million
- EPS increased $0.22 to $0.85; adjusted¹ EPS increased $0.12 to $0.79
First 39 Weeks of Fiscal 2019 Highlights:
- Sales increased 2.8% to $44.6 billion
- Gross profit increased 3.2% to $8.4 billion; gross margin increased 7 basis points
- Operating income decreased 1.3% to $1.6 billion; adjusted¹ operating income increased 8.5% to $1.9 billion
- EPS increased $0.32 to $2.17; adjusted¹ EPS increased $0.25 to $2.45
For the third quarter fiscal 2019 results for the company’s U.S. foodservice operations alone, sales for the third quarter were up 4.1 percent to $10.1 billion, compared to the same period last year. Gross profit increased by 5.1 percent to $2.0 billion, according to the company, while gross margin increased 18 basis points to 19.9 percent, compared to the same period last year.
In terms of operating expenses, this number increased 2.4 percent or $28.7 million, compared to the same period last year. Adjusted operating expenses increased $27.4 million, or 2.3 percent, due mainly to labor and supply chain costs in both warehouse and transportation.
Operating income was $765.4 million, an increase of $68.8 million, or 9.9 percent, compared to the same period last year.
As of May 6, 2:16 PM EDT Sysco stock was at 72.23 USD +1.71 (2.42%)
Looking for more financial updates from industry leaders within foodservice and beyond? Keep checking back with AndNowUKnow for more as we move toward the second half of 2019.
