This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sysco Misses Expectations

HOUSTON ( TheStreet) -- Sysco (SYY) quarterly performance was boosted by higher food inflation costs, but improved profits missed expectations and investors bid the distributor's shares lower.

Sysco said net quarterly profits grew 7.1% to $337.8 million, or 57 cents per share, from $315.3 million, or 53 cents per share, in the year-earlier period. But analysts had expected the food distributor to earn $345.2 million, or 58 cents per shares.

Sysco

Investors voiced their disappointment, bidding Sysco shares lower by 2.3%, to close at $29.28. The First Trust Consumer Staples AlphaDEX (FXG), and the PowerShares Value Line Industry (PYH), exchange-traded funds with holdings in Sysco, fell 0.3% and less than 0.1%, respectively. The Dynamic Consumer Staples Sector Portfolio (PSL) edged 0.4% higher.

Chief Executive Bill DeLaney said Sysco has "seen no consistent pattern of improvement on a week-to-week basis" but said he was "encouraged by the fact that we have now experienced positive volume comparisons for the past several months."

Sysco's revenue surged 13.9% in the fourteen weeks ended July 3 to $10.35 billion, easily topping expectations for top-line sales of $9.95 billion. Strong revenue growth was attributed to increased volume trends and the impact of food cost inflation.

Food cost inflation for Sysco rose 2.2% in the quarter, mainly from increased prices for dairy, meat and produce, further padding top-line figures. It was the first time in a year food inflation costs rose, the company said. Sysco distributes food products and services to a range of facilities like restaurants, hospitals, hotels, schools and colleges. Quarterly sales also got a boost of 1.3% from favorable foreign exchange rates in the quarter.

The company said EPS included a 4 cent per share favorable impact from a 14th week of operations in the quarter, compared with 13 weeks in the fourth quarter last year, as well as a 2 cent per share negative impact from corporate-owned life insurance.

"While industry conditions are more favorable than they were a year ago, our marketplace remains highly competitive," DeLaney said.

-- Reported by Miriam Marcus Reimer from New York.

RELATED STORIES:




>>See our new stock quote page.

Follow Miriam Marcus Reimer on Twitter and become a fan of TheStreet on Facebook.

Get more stock ideas and investing advice on our sister site, Stockpickr.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs