Sysco Shares Pop On Q3 Beat, Raised FY22 Outlook

  • Sysco Corp SYY reported third-quarter FY22 sales growth of 42.9% year-on-year to $16.90 billion, beating the consensus of $15.91 billion.
  • The U.S. Foodservice operations sales rose 43.6% Y/Y, and International Foodservice sales grew 64.5%.
  • Gross profit increased 42% Y/Y to $3.0 billion, and the gross margin fell 12 basis points to 17.8%.
  • The operating margin improved 94 basis points to 2.9%, and operating income for the quarter rose 110.1% to $495.7 million. Non-GAAP operating margin improved 124 basis points to 3.4%.
  • Adjusted EBITDA increased 72.8% Y/Y to $755.8 million in the quarter.
  • Adjusted EPS of $0.71 beat the analyst consensus of $0.55.
  • Sysco held $876.1 million in cash and equivalents as of April 2, 2022. Cash provided by operating activities for the nine months totaled $745.9 million.
  • "Sysco delivered strong results this quarter, reflecting sequential top-line improvements and accelerating market share gains," said CEO Kevin Hourican.
  • Outlook: SYY raised its FY22 adjusted EPS guidance from $3.00-$3.10 to $3.16-$3.26, against the consensus of $3.08.
  • Price Action: SYY shares are trading higher by 6.68% at $86.50 on the last check Tuesday.
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