Sysco Beats Expectations, Rallies Despite Challenges

Sysco defied expectations this quarter, reporting financial results that boasted of increased sales, gross, profit, and case growth. Even in a challenging market, the foodservice provider beat estimates.

Highlights from the company’s third quarter include:

• Sales increased 6.1% to $14.3 billion
• Gross profit increased 5.6% to $2.7 billion; gross margin decreased 9 basis points to 18.65%
• Operating income increased 11.5% to $486 million; adjusted operating income increased 7.1% to $536 million
• Earnings Per Share (EPS) increased $0.19 to $0.63; adjusted EPS increased $0.16 to $0.67

“We had a solid quarter, driven by strong top-line results that translated into healthy gross profit dollar growth,” said Sysco's President and CEO, Tom Bené. “Despite some ongoing cost challenges, we remain on target to deliver on our current three-year plan.”

The company also stated that it saw significant tax benefits during the quarter. As a result, earnings per share growth of 43.2 percent exceeded operating income growth of 11.5 percent.

For more details from Sysco’s financial report, click here.

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