Sysco Shares Slide Post Mixed Q3 Performance Reflecting Industry Softness

Sysco Corporation SYY reported third-quarter FY23 sales growth of 11.7% year-on-year to $18.88 billion, beating the consensus of $18.52 billion.
U.S. Foodservice operations sales rose 10.4% Y/Y, and International Foodservice sales grew 18%.
Gross profit increased 13.9% Y/Y to $3.4 billion, and the gross margin expanded 35 basis points to 18.2%.
Operating margin expanded 75 basis points to 3.7%, and operating income for the quarter rose 40% to $694.2 million. Non-GAAP operating margin expanded 50 basis points to 3.9%.
Adjusted EBITDA increased 19% Y/Y to $899.7 million in the quarter.
Adjusted EPS of $0.90 missed the analyst consensus of $0.92.
Sysco held $854.5 million in cash and equivalents as of April 1, 2023. Cash flow from operations was $1.4 billion for the first 39 weeks of fiscal 2023.
"We delivered strong sales growth throughout the quarter, despite some industry softness beginning in March," said Kevin Hourican, Sysco's President and CEO.
Price Action: SYY shares are trading lower by 3.48% at $74.14 on the last check Tuesday.

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