Performance Food Group Q2 Bottomline Miss Estimates Owing To Decrease In Selling Price: Details

Performance Food Group Company PFGC is trading lower after the company reported worse-than-expected second-quarter earnings results.

Net sales for the second quarter of fiscal 2024 grew 2.9% year over year to $14.296 billion, marginally beating the analyst consensus of $14.275 billion.

 In the quarter under review, the company saw a decrease in selling price per case due to a 1.4% deflation in the Foodservice segment. Overall product cost inflation for the company was approximately 3.6%.

Adjusted earnings per share of 90 cents missed the analyst consensus of 92 cents in the second quarter.  

Gross profit for the second quarter grew 6.6% to $1.6 billion on growth in cases sold and a favorable shift in the mix of cases sold, including growth in the independent channel and Performance Brands.

For the quarter, adjusted EBITDA grew 11.9% to $345.4 million compared to the prior year period.

Performance Food exited the quarter with cash worth $16.4 million. During the three months ending December 30, 2023, the company repurchased and subsequently retired 0.8 million shares of common stock for $50.0 million or an average cost of $58.01 per share. 

Outlook: Performance Food expects third-quarter net sales of $14 billion-$14.3 billion (estimate: $14.39 billion).

The company continues to expect 2024 net sales of $59 billion-$60 billion (estimate: $59.24 billion).

For the full fiscal year 2024, PFG continues to expect adjusted EBITDA to be at the upper end of the previously announced $1.45 billion-$1.5 billion range.

The company reiterated its 3-year net sales and adjusted EBITDA targets. Performance Food continues to expect to achieve annual net sales of $62 billion-$64 billion and Adjusted EBITDA of $1.5 billion-$1.7 billion in fiscal 2025.

Price Action: PFGC shares are trading lower by 1.62% to $72.09 on the last check Wednesday.