Earnings Outlook For Sysco

Sysco SYY is set to give its latest quarterly earnings report on Tuesday, 2024-10-29. Here's what investors need to know before the announcement.

Analysts estimate that Sysco will report an earnings per share (EPS) of $1.13.

The announcement from Sysco is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

Last quarter the company beat EPS by $0.01, which was followed by a 0.27% increase in the share price the next day.

Here's a look at Sysco's past performance and the resulting price change:

Market Performance of Sysco's Stock

Shares of Sysco were trading at $73.92 as of October 25. Over the last 52-week period, shares are up 13.01%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Sysco

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Sysco.

A total of 3 analyst ratings have been received for Sysco, with the consensus rating being Outperform. The average one-year price target stands at $89.33, suggesting a potential 20.85% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of US Foods Hldg, Performance Food Gr and Chefs' Warehouse, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• US Foods Hldg received a Buy consensus from analysts, with an average 1-year price target of $69.8, implying a potential 5.57% downside.
• Analysts currently favor an Outperform trajectory for Performance Food Gr, with an average 1-year price target of $90.3, suggesting a potential 22.16% upside.
• The consensus outlook from analysts is an Buy trajectory for Chefs' Warehouse, with an average 1-year price target of $53.0, indicating a potential 28.3% downside.

Summary of Peers Analysis

The peer analysis summary offers a detailed examination of key metrics for US Foods Hldg, Performance Food Gr and Chefs' Warehouse, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Sysco ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind Sysco

Sysco is the largest US foodservice distributor with 17% share of the highly fragmented $370 billion domestic market. It distributes roughly 500,000 food and nonfood products to restaurants (62% of fiscal 2024 revenue), education and government buildings (7%), travel and leisure (6%), healthcare facilities (7%), and other locations (18%) where individuals consume away-from-home meals. In fiscal 2024, 70% of the firm's revenue was derived from its US foodservice operations, while its international (18%), quick-service logistics (10%), and other (2%) segments contributed the rest.

Key Indicators: Sysco's Financial Health

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining Sysco's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.19% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.98%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 30.89%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Sysco's ROA stands out, surpassing industry averages. With an impressive ROA of 2.46%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 6.96, Sysco faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Sysco visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.