Stock Monitor: US Foods Holding Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 26, 2018 / Active-Investors.com has just released a free earnings report on Sysco Corp. (NYSE: SYY). If you want access to this report 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 second quarter fiscal 2018 operating and financial results on February 05, 2018. The food distributor surpassed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for US Foods Holding Corp. (NYSE: USFD), 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:

www.active-investors.com/registration-sg/?symbol=SYY

Earnings Highlights and Summary

For the 13-week second fiscal quarter ended December 30, 2017, Sysco's sales increased 7.1% to $14.41 billion compared to $13.46 billion in Q2 FY17. The Company's revenue numbers exceeded analysts' estimates of $14.19 billion.

During Q2 FY18, Sysco's gross profit increased 5.0% to $2.70 billion compared to $2.57 billion in Q2 FY17. The Company's gross margin decreased 38 basis points to 18.73% during the reported quarter.

For Q2 FY18, Sysco's operating income advanced 8.1% to $532.28 million versus $492.42 million in Q2 FY17. The Company's adjusted operating income grew 3.9% to $579 million on a y-o-y basis.

Sysco's net income totaled $284.11 million, or $0.54 per diluted share, for Q2 FY18 compared to $275.17 million, or $0.50 per diluted share, in Q2 FY17. The Company's adjusted earnings per share (EPS) surged 34.5% to $0.78. Excluding a one-time benefit associated with the recent US tax rate changes, Sysco's adjusted EPS advanced 13.8% to $0.66, and was ahead of Wall Street's estimates of $0.65.

Segment Results

During Q2 FY18, Sysco's US Foodservice segment's sales climbed 6.6% to $9.7 billion on a y-o-y basis. The local case volume within US Broadline operations grew 4.8% for the reported quarter, while total case volume grew 3.5%.

The US Foodservice segment's gross profit increased 5.1% to $1.9 billion on a y-o-y basis in Q2 FY18, whereas the segment's gross margin decreased 28 basis points to 19.79% compared to the prior year's same quarter. The segment's operating expenses increased 5.9% on a y-o-y basis, due to increased selling and transportation expenses. The segment's operating income grew 3.7% to $706 million on a y-o-y basis.

Sysco's International Foodservice segment has businesses in 12 different countries, with the largest located in Canada, the United Kingdom, and France. During Q2 FY18, the segment's sales advanced 9.3% to $2.9 billion on a y-o-y basis. The International Foodservice segment's operating income was $52 million in the reported quarter, reflecting a drop of 38.2% on a y-o-y basis. The segment's adjusted operating income was $79 million, down 28.8% on a y-o-y basis.

Capital Spending and Cash Flow

Sysco's cash flow from operations was $933.20 million for H1 FY18 compared to $639.40 million in H1 FY17. The Company's free cash flow was $679 million for H1 FY18, which was $313 million higher versus the year ago comparable period. The significant improvements in both cash flow from operations and free cash flow were largely driven by cash taxes that were not paid in the reported quarter, due to flood relief associated with Hurricane Harvey.

Sysco's capital expenditure, net of proceeds from sales of plant and equipment, totaled $255 million for H1 FY18, which was $19 million lower compared to the corresponding period of last year.

Stock Performance Snapshot

February 23, 2018 - At Friday's closing bell, Sysco's stock rose 1.39%, ending the trading session at $59.68.

Volume traded for the day: 1.35 million shares.

Stock performance in the last three-month ? up 9.20%; previous six-month period ? up 15.52%; and past twelve-month period ? up 12.84%

After last Friday's close, Sysco's market cap was at $31.11 billion.

Price to Earnings (P/E) ratio was at 25.94.

The stock has a dividend yield of 2.41%.

The stock is part of the Services sector, categorized under the Food Wholesale industry. This sector was up 1.4% at the end of the session.

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