Dividend.com: Sysco Hungry for Gains

Sysco Misses Revenue Expectations; Shares Hold Steady

Shares of Sysco Foods(SYY Quote) are up nearly 5%, despite the company seeing a 10% drop in second-quarter profit to $237.7 million, or 40 cents a share, compared with $264.1 million, or 43 cents a share, a year earlier.

The food distributor reported revenue of $9.15 billion for the quarter, which came in below analyst expectations of $9.21 billion. Management reported food costs rose by about 7% in the second quarter, while expenses related to life insurance and pension matters contributed to an increase of about $9.5 million in operating expenses.

We removed shares of Sysco from our "Recommended" list back on Oct. 6, when the stock traded at $29.72. The company has a 4.31% dividend yield, based on Friday's closing stock price of $22.29.

The stock has long-term technical support in the $19 to $20 area on the downside and overhead resistance of $30 to $32 on the upside. We would remain on the sidelines for now.

Sysco Foods is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.

Corn Products Slashes 2009 Outlook on Higher Corn Costs and Dollar Concerns

Corn Products International(CPO Quote) reported fourth-quarter earnings that were flat compared to last year, but substantially reduced its 2009 full-year profit outlook.

For the fourth quarter, the company reported earnings of $46.4 million, or 61 cents per share. A year ago, the company's earnings came in at $46.1 million, or 61 cents per share. Analysts had been expecting earnings, on average, of 64 cents per share.