Sysco Sees Modest Growth & EPS Miss in 3Q14

On Monday, Sysco Corporation (NYSE: SYY) reported third quarter 2014 results.Sysco's president and CEO Bill DeLaney commented, “Third quarter sales growth was modest due to the impact of severe weather and lower levels of inflation compared to the prior year. However, March sales and gross profit year-over-year trends were significantly stronger compared to January and February as demand rebounded with improved weather and locally-managed sales strengthened. In addition, while we experienced cost pressure in our delivery area, continued progress in implementing our Business Transformation initiatives drove lower year-over-year operating expense per case in our Broadline segment.”Summary of 3Q14 Results

• Sales were up 3.2 percent at $11.3 billion, from the same period last year.
• Operating income fell 1.4 percent to $333 million.
• The company reported diluted EPS of $0.31. EPS were 8.8 percent lower compared with 3Q13.
• Gross profit increased 2.7 percent to $2 billion.

Year-to-Date Fiscal Results

• Sales grew 4.3 percent to $34.2 billion, from the first 39 weeks in 2013.
• Sysco saw $1.2 billion in operating income.
• Adjusted diluted EPS came in at $1.26, down 1.6 percent from last year.
• Free cash flow increased 21.5 percent to $484 million

Shares of Sysco Corporation closed at $36.21 on Friday and are currently up 2.6 percent at $37.15.