Copyright Benzinga
Sysco Corporation (NYSE:SYY) shares are trading lower on Tuesday after the company reported first-quarter adjusted earnings per share of $1.15 (+5.5% year over year), beating the analyst consensus estimate of $1.12. Quarterly sales of $21.148 billion outpaced the Street view of $21.080 billion. Sales increased 3.2% year over year, while U.S. Foodservice volume increased 0.1%. Also Read: JetBlue Airways CEO Vows Profit Turnaround Despite Wider Loss, Stock Falls Segment Details “Our broadline local business was positive for the quarter, and improved sequentially each period of the quarter,” said Kenny Cheung, Sysco’s CFO. Total Sysco First-quarter sales rose 3.2% to $21.1 billion. Gross profit increased 3.9% to $3.9 billion, and gross margin widened 13 basis points to 18.5%. U.S. Foodservice Operations Sales grew 2.9% to $14.8 billion. Total case volume edged up 0.1%, while local case volume dipped 0.2%. International Foodservice Operations Sales increased 4.5% to $4.0 billion. The segment delivered effective margin management, local volume gains, and double-digit profit growth. Margins “First quarter results included volume improvements, another quarter of gross margin expansion, and solid expense controls. This reflects our focus on operational execution in the current macro environment,” Cheung added. Gross profit rose 3.9% to $3.9 billion. Gross margin expanded by 13 bps to 18.5%. Adjusted operating income rose 2.9% to $898 million, while adjusted operating margin was 4.3%. Adjusted EBITDA increased 0.1% to $1.1 billion. As of the end of the quarter, the company had a cash balance of $844 million and total liquidity of $3.5 billion. Cash flow from operations was $86 million and free cash flow was negative $50 million for the first 13 weeks of fiscal year 2026. Outlook Sysco reaffirmed its fiscal 2026 adjusted EPS outlook at $4.50 to $4.60, versus the $4.59 consensus. It also maintained fiscal 2026 sales guidance of $84 billion to $85 billion, compared with the $84.536 billion estimate. Price Action: SYY shares are trading lower by 1.15% to $77.10 at last check on Tuesday. Read Next: Carrier Q3 Earnings Beat Estimates: Lowers 2025 Outlook, Announces $5 Billion Share Buyback Photo: Shutterstock
