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Sysco Reports Modest Results - Analyst Blog

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Sysco Corp. (SYY) reported modest results for the second quarter of fiscal 2010 with earnings of 45 cents per share. Earnings were 3 cents above the Zacks Consensus Estimate of 42 cents and were up 12.5% year-over-year. 

Sales for the second quarter declined 3.1% year-over-year to $8.9 billion primarily due to challenging business environment. This was however partially offset by the food cost deflation of 3.5%, positive impact from acquisitions of 0.6% and favourable foreign exchange translation of 1.2%. 

Gross margin for the quarter was almost flat year-over-year increasing marginally by 6 basis points (bps) to 19.2% from 19.1%. Operating margin for the quarter was up 50 bps to 5.4% from 4.9% in the prior-year quarter. 

Interest expense for the quarter increased 19.2% to $65.3 million from $54.8 million in the prior-year quarter. 

Capital expenditures for the quarter were $138 million and the company has cash and cash equivalents worth $647 million. The company has a debt to capitalization ratio of 39%. 

Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. The company also includes equipment and supplies for the foodservice and hospitality industries. Sysco operates 186 distribution facilities and serves approximately 400, 000 customers.
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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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