UPDATE: Sysco Posts Better-Than-Expected Q1 Profit

Sysco SYY reported upbeat earnings for the fiscal first quarter on Monday. The Houston, Texas-based company posted quarterly net income of $278.8 million, or $0.47 per share, compared to $285.6 million, or $0.48 per share, in the year-ago period. Excluding certain items, the company earned $0.52 per share. Its revenue rose 6.2% to $12.45 billion from $11.7 billion in the period. However, analysts were estimating earnings of $0.51 per share on revenue of $12.35 billion. Food cost inflation was 4.9% in the quarter. Case volume for its Broadline and SYGMA operations combined rose 2.3%, including acquisitions, and around 2.2%, excluding acquisitions. Operating income fell 2.6% to $466 million, while adjusted operating income rose 5.9% to $509 million. Gross margin narrowed 4 basis points to 17.59% in the quarter. Cash flow from operations slipped to $63 million for the quarter. "We are pleased with the solid operating performance we delivered in our first fiscal quarter in the midst of ongoing challenging market conditions," said Bill DeLaney, Sysco's president and chief executive officer. Sysco shares rose 0.67% to $38.80 in pre-market trading.