Sysco Corporation (SYY) delivered first-quarter fiscal 2025 results, wherein the top and bottom lines grew year over year. Earnings missed the Zacks Consensus Estimate, while sales surpassed the same. Sysco’s adjusted earnings of $1.09 per share missed the Zacks Consensus Estimate of $1.13. Nevertheless, the bottom line rose 1.9% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The global food product maker and distributor reported sales of $20,484 million, which jumped ...

Earnings Call Overview - Sysco Corporation held its Q1 2025 earnings conference call on October 29, 2024, at 10:00 AM ET [1] - The call featured Kevin Hourican, Chairman and CEO, and Kenny Cheung, CFO, alongside Kevin Kim, VP of Investor Relations [2] Forward-Looking Statements - Statements made during the call regarding the company's intentions, beliefs, expectations, or predictions are forward-looking and subject to material differences in actual results [3] - Additional information on factors that could cause results to differ is available in the company's SEC filings, including the annual report on Form 10-K for the year ended June 29, 2024 [3] Non-GAAP Financial Measures - The company included non-GAAP financial measures in its comments during the earnings call [4]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $20.5 billion, representing a growth of 4.4% compared to the previous year [11] - Adjusted operating income increased by 2.2% for the period, supported by disciplined expense control [11] - Adjusted earnings per share (EPS) was $1.09, a growth of 1.9% year-over-year [12] - Gross profit margin was 18.3%, down 27 basis points from the previous year [24][40] Business Line Data and Key Metrics Changes - U.S. Foodservice volume growth was 2.7%, with national volume growth at 5.5% and local volume growth at 0.2% [11][39] - International business segment grew its top line by 3% and adjusted operating income by 12% [13][46] - SYGMA segment experienced a sales growth of 7.3% and operating income growth of 38.5% [15][47] Market Data and Key Metrics Changes - Food traffic to restaurants decreased by 3.6% in Q1, with improvements noted throughout the quarter [7][8] - Non-restaurant sectors showed strong performance, particularly in the business and industry sector [10] Company Strategy and Development Direction - Sysco is focusing on improving local case growth and enhancing its sales consultant compensation model to drive performance [19][20] - The company plans to divest its joint venture in Mexico to concentrate on higher yield priorities globally [28][38] - Sysco aims to expand its specialty portfolio, targeting a $20 billion specialty business through total team selling initiatives [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improvements in food traffic due to economic factors and actions by the Federal Reserve [8] - The company is confident in achieving its full-year guidance, expecting a more normal rate of top-line growth in the second half of the year [36][50] - Management highlighted the importance of strategic sourcing efforts to positively impact gross profit margins in the latter half of the fiscal year [37][52] Other Important Information - Sysco's adjusted operating expenses were $2.9 billion for the quarter, reflecting a 14.1% of sales [42] - The company generated approximately $53 million in operating cash flow and returned over $359 million to shareholders in Q1 [49] Q&A Session Summary Question: What is driving the stronger exit trends in September and how is October tracking? - Management noted that October's industry traffic is similar to September, with improvements in the last two weeks of October [61] Question: Can you elaborate on the impact of the new compensation model on local case growth? - Management indicated that the new compensation model has stabilized and is expected to positively impact local case growth moving forward [62][63] Question: What external dynamics are affecting U.S. gross margins? - Management identified customer mix and strategic sourcing timing as key factors impacting gross margins, with confidence in future improvements [68][69] Question: What was the nature of the turnover related to the sales force compensation change? - Management acknowledged an increase in turnover during the transition but confirmed that top performers remained and are benefiting from the new model [80][81] Question: How is the sales force adapting to the new compensation model and territory changes? - Management reported that the sales force is adapting well, with team-based selling initiatives showing positive results [90][91]

Sysco (SYY) reported $20.48 billion in revenue for the quarter ended September 2024, representing a yearover-year increase of 4.4%. EPS of $1.09 for the same period compares to $1.07 a year ago. The reported revenue represents a surprise of +0.18% over the Zacks Consensus Estimate of $20.45 billion. With the consensus EPS estimate being $1.13, the EPS surprise was -3.54%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

Sysco (SYY) came out with quarterly earnings of $1.09 per share, missing the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -3.54%. A quarter ago, it was expected that this food distributor would post earnings of $1.38 per share when it actually produced earnings of $1.39, delivering a surprise of 0.72%. Over the last four quarters, the company ha ...

SysCO" SysCO" Fiscal Q1 2025 Earnings Results October 29, 2024 Forward-Looking Statements Statements made in this presentation that look forward in time or that express management's beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual resul ...

1 SYSCO REPORTS FIRST QUARTER FISCAL YEAR 2025 RESULTS HOUSTON, October 29, 2024 - Sysco Corporation (NYSE: SYY) ("Sysco" or the "company") today announced financial results for its 13-week first fiscal quarter ended September 28, 2024. Key financial results for the first quarter of fiscal year 2025 include the following (comparisons are to the same period in fiscal year 2024): • Sales increased 4.4%; U.S. Foodservice volume increased 2.7%; • Gross profit increased 2.9% to $3.8 billion; • Operating income i ...

Analyst's Disclosure: I/we have a beneficial long position in the shares of MCD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The contents of this article, my previous articles, and my comments are for informational purposes only and may not be considered investment an ...

Sysco Corporation (SYY) is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 earnings on Oct. 29. The Zacks Consensus Estimate for net sales is pegged at $20.5 billion, suggesting an increase of 4.2% from the prior-year quarter. The consensus mark for fiscal first-quarter earnings has remained unchanged in the past 30 days at $1.14 per share, indicating growth of 6.5% from the figure reported in the year-ago quarter. SYY has a trailing four-quarter earnings surprise of ...

Wall Street analysts expect Sysco (SYY) to post quarterly earnings of $1.14 per share in its upcoming report, which indicates a year-over-year increase of 6.5%. Revenues are expected to be $20.45 billion, up 4.2% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company reveals its earnings, it is vital to take ...