Sysco delivered a mixed set of results for the last quarter and it was able to surpass the analyst consensus estimate in terms of revenues as result of double-digit sales growth. However, despite a decent earnings growth year-over-year and strong volume growth as well as market share gains, the company missed out on meeting earnings expectations. The company saw a growth in operating income across each of its segments including International and SYGMA. Sysco continues to advance its growth strategy with progress in its digital tools, merchandising initiatives, and supply chain investments in sales. A labor dispute had negatively impacted sales during the quarter. As per the management, its merchandising and sales teams have been doing a solid job with strategic sourcing and inflation management as well as with profitability management, customer acquisition, and customer retention. Higher-margin specialty products have been introduced and received well by customers. We provide the stock of Sysco with a ‘Hold’ rating and a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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