Sysco (NYSE:SYY) Issues Earnings Results, Misses Expectations By $0.04 EPS

Posted by Casey Walker on Feb 2nd, 2023

Sysco (NYSE:SYY – Get Rating) announced its quarterly earnings data on Tuesday. The company reported $0.80 EPS for the quarter, missing analysts’ consensus estimates of $0.84 by ($0.04), Briefing.com reports. Sysco had a net margin of 1.93% and a return on equity of 140.94%. The firm had revenue of $18.59 billion during the quarter, compared to analyst estimates of $18.59 billion. During the same period last year, the business posted $0.57 EPS. The company’s revenue was up 13.9% on a year-over-year basis. Sysco updated its FY23 guidance to $4.00-4.15 EPS and its FY 2023 guidance to $4.00-$4.15 EPS.

Sysco Price Performance

Shares of SYY traded down $2.16 during midday trading on Thursday, hitting $75.76. 179,449 shares of the company traded hands, compared to its average volume of 2,583,907. Sysco has a one year low of $70.61 and a one year high of $91.53. The firm has a market cap of $38.39 billion, a P/E ratio of 28.13, a PEG ratio of 2.08 and a beta of 1.10. The company has a debt-to-equity ratio of 7.20, a current ratio of 1.24 and a quick ratio of 0.68. The stock has a 50-day moving average of $80.24 and a 200-day moving average of $81.18.

Sysco Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 27th. Investors of record on Friday, January 6th were issued a dividend of $0.49 per share. The ex-dividend date was Thursday, January 5th. This represents a $1.96 dividend on an annualized basis and a yield of 2.59%. Sysco’s dividend payout ratio (DPR) is 70.76%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the company. Credit Suisse Group decreased their price target on Sysco from $100.00 to $94.00 and set an “outperform” rating for the company in a report on Wednesday. Deutsche Bank Aktiengesellschaft cut their price objective on Sysco from $83.00 to $80.00 and set a “hold” rating on the stock in a research report on Wednesday. Wells Fargo & Company decreased their target price on Sysco from $95.00 to $87.00 and set an “overweight” rating for the company in a research report on Wednesday, January 4th. TheStreet downgraded shares of Sysco from a “b” rating to a “c+” rating in a report on Tuesday. Finally, Barclays decreased their price objective on shares of Sysco from $92.00 to $87.00 and set an “overweight” rating for the company in a report on Wednesday. Four analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $89.64.

Hedge Funds Weigh In On Sysco

Hedge funds have recently bought and sold shares of the company. Charles Schwab Investment Management Inc. grew its position in shares of Sysco by 2.7% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,611,080 shares of the company’s stock valued at $213,195,000 after purchasing an additional 67,948 shares in the last quarter. Eaton Vance Management boosted its stake in shares of Sysco by 8.8% during the first quarter. Eaton Vance Management now owns 2,237,856 shares of the company’s stock valued at $182,720,000 after purchasing an additional 180,548 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Sysco by 11.3% in the second quarter. Goldman Sachs Group Inc. now owns 1,790,496 shares of the company’s stock worth $151,673,000 after buying an additional 181,212 shares during the period. Ensign Peak Advisors Inc boosted its position in Sysco by 29.4% during the 1st quarter. Ensign Peak Advisors Inc now owns 897,521 shares of the company’s stock valued at $73,284,000 after buying an additional 204,147 shares during the period. Finally, Alliancebernstein L.P. grew its holdings in Sysco by 1.8% in the 3rd quarter. Alliancebernstein L.P. now owns 697,240 shares of the company’s stock worth $49,302,000 after acquiring an additional 12,587 shares during the last quarter. Hedge funds and other institutional investors own 81.18% of the company’s stock.

About Sysco

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Sysco Corp. engages in selling, marketing, and distribution of food products to restaurants, healthcare and educational facilities, and lodging establishments. It operates through the following segments: U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other. The U.S. Foodservice Operations consists of U.S.