SYSCO Posts Upbeat Q4 Earnings, But Sales Miss Views

reported better-than-expected earnings for the fiscal fourth quarter, but the company's sales missed analysts' estimates. The Houston, Texas-based company reported quarterly net earnings of $73 million, or $0.12 per share, compared to $254.2 million, or $0.43 per share, in the year-ago period. Excluding items, the company's adjusted earnings rose 6.1 percent to $0.52 per share. Its revenue rose 0.9 percent year-over-year to $12.4 billion. However, analysts were expecting a profit of $0.51 per share on revenue of $12.7 billion. The average estimate among 11 Estimize users was for earnings of $0.53 per share and revenue of $12.71 billion. Its gross profit rose 3.0 percent to $2.2 billion, while gross margin expanded 35 basis points to 17.9 percent. Its adjusted operating income jumped 5.8 percent to $509 million for the quarter. Case volume for its Broadline operations climbed 3.6 percent in the quarter, and around 3.2 percent excluding acquisitions. "I am pleased with our results for fiscal 2015 and particularly encouraged by our performance in the fourth quarter," said Bill DeLaney, Sysco president and chief executive officer. "For the year, we delivered solid earnings growth on an adjusted basis by providing our customers with excellent service, growing our business with both our locally and corporate managed customers, and stabilizing our gross margins by successfully implementing several value-added commercial initiatives." SYSCO shares gained 1.88 percent to close at $36.93 on Friday.