Earnings Preview: What to Expect From Sysco’s Report

Company Overview - Sysco Corporation (SYY) is valued at $35.6 billion and is a leading American multinational food-service distribution company headquartered in Houston, Texas, distributing a wide range of food and related products globally [1] Earnings Expectations - Analysts expect Sysco to report a profit of $0.97 per share for the fiscal second quarter, reflecting a 4.3% increase from $0.93 per share in the same quarter last year [2] - For the full fiscal year, analysts anticipate an EPS of $4.56, which is a 2.2% increase from $4.46 in fiscal 2025, with expectations of a further rise to $5 in fiscal 2027, representing a 9.7% year-over-year growth [3] Stock Performance - Sysco's stock has decreased by 4.2% over the past year, underperforming the S&P 500 Index, which gained 14.8%, and the Consumer Staples Select Sector SPDR Fund, which saw a 1.7% loss [4] - The decline in stock performance is attributed to slower growth and margin pressures rather than structural issues within the company, with reduced traffic at restaurants impacting volume growth and ongoing inflation in food, labor, and logistics costs affecting margins [5] Analyst Ratings - The consensus opinion among analysts on Sysco stock is moderately bullish, with a "Moderate Buy" rating overall; out of 16 analysts, 10 recommend a "Strong Buy" and 6 suggest a "Hold" [6] - The average analyst price target for Sysco is $87.64, indicating a potential upside of 18% from current levels [6]