Sysco's stock turns lower, down 1.2% premarket after being up as much as 2.7% earlier
Sysco's stock turns lower, down 1.2% premarket after being up as much as 2.7% earlier
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Sysco's stock turns lower, down 1.2% premarket after being up as much as 2.7% earlier
Shares of Sysco Corp. rallied 1% in premarket trade Monday, after the food products distributor reported a fiscal third-quarter profit that rose above expectations. Net income grew to $330.1 million, or 63 cents a share, from $238.3 million, or 44 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share rose 31% to 67 cents, above the FactSet consensus of 63 cents. Revenue increased 6.1% to $14.35 billion, in line with the FactSet consensus of $14.32 billion, as U.S. foodservice sales growth of 5.1% to $9.7 billion and international foodservice sales rose 11% to $2.8 billion. "We had a solid quarter, driven by strong top-line results that translated into healthy gross profit dollar growth," said Chief Executive Tom Bené. "Despite some ongoing cost challenges, we remain on target to deliver on our current three-year plan." The stock has gained 6.6% over the past three months through Friday, while the S&P 500 has lost 0.7%.
Sysco's stock surges 1.8% premarket after Q3 results
Sysco Q3 U.S. foodservice revenue up 5.1% to $9.7 bln; FactSet consensus $9.6 bln
Sysco Q3 revenue $14.35 bln vs. $13.52 bln a year ago; FactSet consensus $14.32 bln
Sysco Q3 adj. EPS 67 cents; FactSet consensus 63 cents
Sysco Q3 EPS 63 cents vs. 44 cents a year ago
General Mills Inc. will raise prices on some cereals and snacks to reflect higher ingredient and shipping costs, as food companies battle inflationary pressures that are eating into profits. The maker of Cheerios cereal and Yoplait yogurt said freight costs in North America were near 20-year highs in February and food prices were also higher than expected, prompting the conglomerate to lower its earnings expectations for the year.
Tyson Foods Inc. said Thursday it will spend more than $100 million on one-time cash bonuses for workers this year as a result of the new tax law. Recent tax changes also helped the meat producer fatten up its bottom line in its latest quarter, as it recorded a $790 million benefit. The company reported a first-quarter profit of $1.63 billion, or $4.40 a share, compared with $593 million, or $1.59 a share, a year ago.
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The sale-leaseback agreement comes as the grocery chain looks to shed additional supermarkets amid pressure to boost results.
A proxy fight is under way at Supervalu Inc. as an activist investor seeks to overhaul the board of directors at one of the nation’s largest grocery companies.
General Mills will raise prices on some of its packaged foods—despite intensifying grocery-store competition—as higher ingredient and shipping costs cut into profitability. The company’s shares fell 9% after its earnings report.
U.S. manufacturers and food companies are grappling with rising material costs on top of pressure from higher wages—a potential double whammy that could force them to raise prices or accept lower profit margins.
Credit Suisse analyst Judah Frommer maintained a Hold rating on Sysco Corp (NYSE: SYY) yesterday ...[...]
While intense competition and changing consumer preferences are a worry, companies in the consumer staples sector stay afloat on the back of well-chalked product strategies and saving efforts.
Pivotal Research analyst Ajay Jain maintained a Hold rating on Sysco Corp (NYSE: SYY) today ...[...]
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We expect Sysco (SYY) to gain from strength at its U.S. Foodservice unit, strategy for 2020 and solid cost-savings efforts. These should help offset higher freight costs and food cost inflation.
Newell (NWL) is grappling with soft core sales and adverse product mix, which might dent first-quarter results. Although the transformation plan is on track, the recent performance suggests trouble.
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With growth hard to come by for companies in this mature space, Consumer Staples players have to remain focused on squeezing more out of their operations.
The sale-leaseback agreement comes as the grocery chain looks to shed additional supermarkets amid pressure to boost results.
Clorox's (CLX) weak margin in the last reported quarter is expected to continue in the fiscal third quarter. However, the company's approach toward brand management and Go Lean strategy are impressive.
SuperValu’s trailing-12-month gross margin stands at ~12.0% of sales and is among the lowest in the food wholesale group and its retail peer group.
Archer Daniels (ADM) remains optimistic about delivering growth via cost-savings efforts, innovations and global strength. However, the company has a dismal sales history for more than three years.
Estee Lauder (EL) consistently gains from its buyouts and online business. However, soft U.S. store sales pose concerns.
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Though Supervalu’s (SVU) stock has delivered below-average performance this year, Wall Street believes there's scope for revival.
Supervalu’s (SVU) stock has failed to please investors for quite some time now. After losing about 70% of its value between 2015 and 2017, the stock has already shed more than 30% so far this year.
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Sysco Corp. engages in selling, marketing, and distribution of food products to restaurants, healthcare and educational facilities, and lodging establishments. It operates through the following segments: U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other. The U.S. Foodservice Operations consists of U.S. Broadline operations, custom-cut meat and seafood companies, FreshPoint, and European Imports. The International Foodservice Operations segment includes broadline operations in Canada and Europe, including the Brakes Group, Bahamas, Mexico, Costa Rica, and Panama, as well as a company that distributes to international customers. The SYGMA segment comprises of its customized distribution subsidiary. The Other segment is composed of hotel supply operations and Sysco Labs, which includes suite of technology solutions. The company was founded by John F. Baugh in 1969 and is headquartered in Houston, TX. (See Full Profile)
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