Why Performance Food Group Shares Are Sliding Today

Performance Food Group Co PFGC reported third-quarter FY22 sales growth of 81.6% year-on-year to $13.08 billion, marginally missing the consensus of $13.09 billion. Total case volume grew 35% Y/Y.
Net sales for Foodservice increased 27.3% to $6.6 billion, and Vistar increased 51.1% to $892.2 million.
Convenience net sales increased 292.9% to $5.6 billion, primarily attributable to the acquisition of Core-Mark, which contributed $4.15 billion in net sales.
Operating expenses rose 57.8% to $1.3 billion.
Gross profit increased 62% Y/Y to $1.3 billion, with the margin contracting 130 basis points to 10.3%.
The operating margin was 0.5%, and operating income for the quarter rose 193% to $68.6 million.
The company held $20.8 million in cash and equivalents as of April 2, 2022. Net cash provided by operating activities for nine months totaled $390.6 million.
Adjusted EBITDA increased 96% Y/Y to $237.9 million.
Adjusted EPS was $0.51, in-line with the Street view.
Outlook: Performance Food sees FY22 sales of $50.5 billion - $51 billion (consensus $50.67 billion) versus the prior view of $50 billion - $51 billion.
It sees an adjusted EBITDA of $990 million - $1 billion against the previous expectation of $970 million - $990 million.
Price Action: PFGC shares are trading lower by 4.63% at $45.34 on the last check Wednesday.

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