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SYSCO Fourth Quarter Earnings
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SYY
SYSCO (NYSE:SYY) announced its results for the fourth quarter on August 13, 2012. Sysco, through its subsidiaries and divisions, is a distributor of food and related products.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Though SYSCO's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported 53 cents per share versus the 55 cents per share estimate and revenues of $11.05 billion versus the $10.49 billion estimate. EPS fell 7% while revenue climbed 5.9% from the same period last year. SYSCO's revenue has grown during each of the past four quarters on a year-over-year basis. SYSCO reported net income of $309.3 million during the fourth quarter. This is a 8% decline from last year.
Management Quote: "Market conditions remained challenging throughout the year due to increasing product costs and an uneven economic recovery. Nevertheless, we successfully supported our customers and grew our share of market," said Bill DeLaney, Sysco's president and chief executive officer. "We are making meaningful progress on our business transformation initiatives and believe the benefits will both improve our financial performance over time and further enhance our leadership position in the industry."
A Look Back: Net income has dropped 2% year-over-year on average across the last five quarters. Performance was hurt by an 8% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for first quarter of the next fiscal year has fallen from 54 cents per share to 48 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved up from $1.91 a share to $1.94 over the last thirty days.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Though SYSCO's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported 53 cents per share versus the 55 cents per share estimate and revenues of $11.05 billion versus the $10.49 billion estimate. EPS fell 7% while revenue climbed 5.9% from the same period last year. SYSCO's revenue has grown during each of the past four quarters on a year-over-year basis. SYSCO reported net income of $309.3 million during the fourth quarter. This is a 8% decline from last year.
Management Quote: "Market conditions remained challenging throughout the year due to increasing product costs and an uneven economic recovery. Nevertheless, we successfully supported our customers and grew our share of market," said Bill DeLaney, Sysco's president and chief executive officer. "We are making meaningful progress on our business transformation initiatives and believe the benefits will both improve our financial performance over time and further enhance our leadership position in the industry."
A Look Back: Net income has dropped 2% year-over-year on average across the last five quarters. Performance was hurt by an 8% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for first quarter of the next fiscal year has fallen from 54 cents per share to 48 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved up from $1.91 a share to $1.94 over the last thirty days.
by
Investopedia Staff
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