UPDATE: Sysco Posts In-Line FQ4 Earnings
Sysco (NYSE: SYY) reported in-line earnings for its fiscal fourth quarter.
The Houston, Texas-based company posted a quarterly profit of $254.2 million, or $0.43 per share, versus a year-ago profit of $283 million, or $0.47 per share. Excluding certain items, its adjusted earnings came in flat at $0.50 per share.
Its revenue rose 5.9% to $12.29 billion from $11.6 billion. However, analysts were projecting a profit of $0.50 per share on revenue of $12.14 billion.
Sysco's operating income dropped 7.7% to $425 million in the quarter, while adjusted operating income rose 1.2% y/y.
Sysco's gross margin narrowed to 17.5% versus 17.9%. Its gross profit climbed 4% to $2.2 billion.
Case volume for Sysco's Broadline and SYGMA operations combined rose 2.2%. However, excluding acquisitions, case volume increased 2.1%.
For fiscal 2014, cash flow from operations was $1.5 billion, while free cash flow was $995 million.
Bill DeLaney, Sysco's president and chief executive officer said, "While business conditions remained challenging for our customers, we experienced improving trends in year-over-year sales and gross profit growth in the last four months of our fiscal year. As we begin fiscal 2015, we are well positioned to further strengthen our customer relationships and look forward to completing our proposed merger with US Foods."
Sysco shares rose 0.22% to $36.35 in pre-market trading.
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