Join        Login             Stock Quote

Sysco (SYY) Posts 11.5 Pct Decline In 2Q Earnings On Higher Expenses

 February 04, 2013 08:46 AM

(By Balaseshan) Food product supplier Sysco Corp. (NYSE: SYY) reported a 11.5% decline in quarterly earnings due to an increase in operating expenses. Despite revenue beating consensus, adjusted earnings missed Street's expectations.

Profit for the second quarter declined 11.5% to $221 million, while earnings per share (EPS) decreased 11.6% to $0.38. Adjusted EPS for special items fell 7% to $0.40, while adjusted EPS for underlying business rose 4.3% to $0.49.

Sales increased 5.4% to $10.8 billion. Food cost inflation, as measured by the estimated change in Sysco's product costs, was 2.5%. Inflation in the first quarter was mainly driven by rises in the meat and poultry categories.

[Related -The Blackstone Group L.P. (BX): Is A Smart Housing And Private Equity Play]

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.41 per share on revenue of $10.70 billion for the second quarter.

Sales from acquisitions (within the last 12 months) increased sales by 1.1%, and the impact of changes in foreign exchange rates for the second quarter lifted sales by 0.3%. Case volume for the company's Broadline and SYGMA operations combined grew 2.8% during the quarter including acquisitions, and about 1.8% excluding acquisitions.

Operating expenses increased $116 million or 8.2%, due in part to a $45 million increase in gross business transformation expenses, and a $17 million increase in payroll expense. Excluding certain items and business transformation expenses, adjusted operating expenses increased 3.7%.

[Related -Are Blue-Chip Consumer Staples Worth Today's Premium Valuations?]

Cash flow from operations was $387 billion for the first half of fiscal 2013, a 28% drop from the prior year period. Free cash flow in the first half increased 19.6% to $125 million.

SYY closed Friday's regular session up 1.01% at $32.09. The stock has been trading between $27.05 and $32.40 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageUS REITs Edged Higher Last Week As Emerging Markets Slumped

Real estate investment trusts (REITs) in the US took the lead in last week’s shortened holiday trading week read on...

article imageA Contrarian Perspective On The Short EuroTtrade

As the euro continues to drift lower, it has become the accepted wisdom that we are headed for parity with read on...

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.