Stock Monitor: Chefs' Warehouse Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 08, 2018 / If you want access to our free earnings report on Sysco Corp. (NYSE: SYY), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SYY. The Company reported its third quarter fiscal 2018 operating and financial results on May 03, 2018. The food distributor surpassed revenue and earnings estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for The Chefs' Warehouse, Inc. (NASDAQ: CHEF), which also belongs to the Services sector as the Company Sysco. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sysco most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the 13-week third fiscal quarter ended March 31, 2018, Sysco's sales increased 6.1% to $14.35 billion compared to $13.52 billion in Q3 FY17. The Company's revenue numbers came in ahead of analysts' estimates of $14.32 billion.

During Q3 FY18, Sysco's gross profit increased 5.6% to $2.68 billion compared to $2.53 billion in Q3 FY17, driven by a positive case growth and an effective ongoing management of product cost inflation. The Company's gross margin decreased 9 basis points (bps) to 18.65% in the reported quarter.

For Q3 FY18, Sysco's operating income advanced 11.5% to $485.9 million compared to $436.0 million in Q3 FY17. The Company's adjusted operating income increased 7.1% to $536 million in the reported quarter.

Sysco reported net earnings of $330.1 million, or $0.63 per diluted share, in Q3 FY18 compared to $238.3 million, or $0.44 per diluted share, in Q3 FY17. The Company's adjusted earnings surged 31.4% to $0.67 per diluted share compared to $0.51 per diluted share in the year earlier same quarter. Sysco's earnings exceeded Wall Street's estimates of $0.63 per share.

Segment Results

During Q3 FY18, Sysco's US Foodservice segment's sales rose 5.1% to $9.7 billion. In the segment, local case volume within the US Broadline operations grew 2.6% in the reported quarter, of which 1.8% was organic; and total case volume grew 2.4%, of which 1.7% was organic. The US Foodservice segment's gross profit increased 4.1% to $1.9 billion and its gross margin fell 19 bps to 19.70% in the reported period versus the prior year's comparable period. Food cost inflation was 2.6% in the US Broadline operations, as measured by the estimated change in Sysco's product costs, primarily in the meat, dairy, and produce categories. The segment's operating income was $695 million in the reported quarter, reflecting an increase of 0.9% on a y-o-y basis. The segment's adjusted operating income rose 1.2% to $697 million in Q3 FY18.

For Q3 FY18, Sysco's International Foodservice segment's sales jumped 10.8% to $2.8 billion on a y-o-y basis. The segment's gross profit increased 12.9% to $583 million and its gross margin increased 40 bps to 20.84% in the reported period compared to the prior year's corresponding period. The segment's operating income was $19 million in Q3 FY18, reflecting an increase of 20.2% on a y-o-y basis. The segment's adjusted operating income advanced 11.6% to $45 million in Q3 FY18.

Capital Spending and Cash Flow

Sysco's cash flow from operations was $1.1 billion in the first 39 weeks of the fiscal year 2018, which was $42 million higher compared to the same period of last year. The Company's free cash flow in the first 39 weeks of FY18 was $768 million, which was $81 million higher versus the comparable period of last year. The significant improvements in both cash flow from operations and free cash flow were largely driven by reduced cash taxes that were paid and increased earnings.

Stock Performance Snapshot

June 07, 2018 - At Thursday's closing bell, Sysco's stock was slightly down 0.03%, ending the trading session at $65.76.

Volume traded for the day: 1.69 million shares.

Stock performance in the last month ? up 4.81%; previous three-month period ? up 8.73%; past twelve-month period ? up 20.11%; and year-to-date ? up 8.28%

After yesterday's close, Sysco's market cap was at $34.32 billion.

Price to Earnings (P/E) ratio was at 26.43.

The stock has a dividend yield of 2.19%.

The stock is part of the Services sector, categorized under the Food Wholesale industry.

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