Sysco (NYSE:SYY) Posts Earnings Results, Beats Estimates By $0.02 EPS

Sysco (NYSE:SYY) posted its quarterly earnings results on Tuesday. The company reported $1.53 EPS for the quarter, topping the consensus estimate of $1.51 by $0.02, FiscalAI reports. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The business had revenue of $22.12 billion during the quarter, compared to analysts’ expectations of $21.95 billion. During the same period last year, the company posted $1.48 earnings per share. The firm’s quarterly revenue was up 4.7% compared to the same quarter last year. Sysco updated its FY 2027 guidance to 5.025-5.117 EPS and its Q1 2027 guidance to 1.180-1.200 EPS.

Here are the key takeaways from Sysco’s conference call:

• Sysco exceeded fourth-quarter expectations, reporting 4.7% revenue growth to more than $22 billion and adjusted EPS of $1.53; full-year adjusted EPS reached $4.61 despite pausing share repurchases.
• U.S. local case volumes accelerated to 2.6% in Q4, while improved sales-team retention, AI-enabled selling tools, customer penetration, and new-customer wins supported stronger momentum heading into fiscal 2027.
• Management guided to fiscal 2027 revenue growth of 6%-7% and adjusted EPS growth of 9%-11%, supported by approximately 2.5% U.S. local case growth, positive Sysco Brand mix, continued international profit growth, and a 53rd week.
• Sysco expects approximately $100 million of in-year savings from AI-driven efficiency initiatives in fiscal 2027, with a roughly $160 million run-rate benefit and additional opportunities in routing, inventory forecasting, procurement, contract management, and back-office technology.
• The Restaurant Depot acquisition remains subject to FTC review after the agency issued a second request, while the transaction will temporarily suspend buybacks and increase leverage; management said it remains confident the deal will close by the third quarter of fiscal 2027 and that rapid deleveraging will follow.

Sysco Stock Up 0.4%

Shares of Sysco stock traded up $0.37 during midday trading on Thursday, reaching $84.58. 664,652 shares of the company’s stock traded hands, compared to its average volume of 4,198,175. The company has a market cap of $40.49 billion, a price-to-earnings ratio of 23.08, a price-to-earnings-growth ratio of 3.18 and a beta of 0.64. The company’s 50 day simple moving average is $80.97 and its 200 day simple moving average is $80.32. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.80 and a current ratio of 1.28. Sysco has a 52 week low of $68.19 and a 52 week high of $91.85.

Insider Transactions at Sysco

In other Sysco news, Director John M. Hinshaw acquired 13,304 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average cost of $75.17 per share, for a total transaction of $1,000,061.68. Following the completion of the acquisition, the director owned 40,200 shares of the company’s stock, valued at approximately $3,021,834. This trade represents a 49.46% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.56% of the company’s stock.

Institutional Trading of Sysco

Several large investors have recently made changes to their positions in SYY. Corient Private Wealth LLC grew its holdings in Sysco by 1.7% during the fourth quarter. Corient Private Wealth LLC now owns 193,688 shares of the company’s stock valued at $13,847,000 after purchasing an additional 3,170 shares during the last quarter. Alberta Investment Management Corp acquired a new stake in shares of Sysco in the fourth quarter worth $5,151,000. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Sysco by 93.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 108,393 shares of the company’s stock worth $7,725,000 after buying an additional 52,319 shares during the period. Summit Global Investments bought a new stake in shares of Sysco during the 4th quarter worth $1,552,000. Finally, Beacon Pointe Advisors LLC grew its stake in Sysco by 9.5% in the 4th quarter. Beacon Pointe Advisors LLC now owns 17,844 shares of the company’s stock valued at $1,315,000 after buying an additional 1,544 shares during the last quarter. Institutional investors own 83.41% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have issued reports on SYY. Weiss Ratings reiterated a “hold (c+)” rating on shares of Sysco in a research report on Friday, June 26th. Citigroup boosted their price target on shares of Sysco from $82.00 to $86.00 and gave the company a “neutral” rating in a report on Wednesday. UBS Group upped their price target on shares of Sysco from $90.00 to $95.00 and gave the stock a “buy” rating in a research note on Wednesday. Morgan Stanley increased their price objective on Sysco from $84.00 to $88.00 and gave the stock an “equal weight” rating in a report on Thursday, July 16th. Finally, Barclays reduced their price objective on Sysco from $92.00 to $86.00 and set an “overweight” rating for the company in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $89.50.

About Sysco

Sysco Corporation (NYSE: SYY) is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.