US Foods Stock Gains As Q2 Earnings Smashes Estimates

US Foods Holding Corp USFD reported second-quarter FY21 sales growth of 68.9% year-on-year, to $7.66 billion, beating the analyst consensus of $6.86 billion.
Total case volume increased 53.5%, and independent restaurant case volume rose 79.1%.
Markets lifting in-person dining restrictions on restaurants and an increase in leisure travel drove the results. Net sales also benefited from food cost inflation of 8.2%.
Gross profit increased 74.2% Y/Y to $1.2 billion with a profit margin of 15.3%.
Operating expenses rose 43.2% Y/Y to $1.0 billion.
The operating margin was 1.6%, and operating income for the quarter was $124 million.
The company held $699 million in cash and equivalents as of July 3, 2021.
Net cash provided by operating activities for the six months amounted to $250 million.
Adjusted EBITDA of $332 million increased 277.3%.
Adjusted EPS of $0.58 beat the analyst consensus of $0.37.
"As markets around the United States reopen without restrictions, we have seen strong demand for our products, services, and consultative expertise," said CEO Pietro Satriano.
Price action: USFD shares are trading higher by 5.54% at $36.00 in premarket on the last check Monday.

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