NEW YORK (TheStreet) -- Sysco Corp. (SYY) - Get Report is scheduled to release its fiscal 2016 first quarter financial results on Monday before the market open.

The company is expected to report unchanged earnings and a year-over-year increase in revenue for the quarter.

Analysts have estimated earnings of 52 cents per share on revenue of $12.58 billion for the latest quarter.

Last year, the company reported earnings of 52 cents per share on $12.45 billion in revenue for the first quarter of fiscal 2015.

In August, Houston-based Sysco added activist investor Nelson Peltz and Josh Frank of Trian Fund Management to its board of directors after the firm acquired a 7.1% stake in the company.

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Peltz sees long-term potential in the food distributor, even after the company abandoned its plans to acquire US Foods for $8.2 billion after the transaction was blocked by the Federal Trade Commission in June.

Sysco stock closed down 1.29% to $41.25 on Friday afternoon.

Separately, TheStreet Ratings team rates SYSCO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate SYSCO CORP (SYY) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • SYY's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $694.99 million or 7.79% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.38%.
  • SYSCO CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, SYSCO CORP reported lower earnings of $1.16 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($1.96 versus $1.16).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The gross profit margin for SYSCO CORP is rather low; currently it is at 18.85%. Regardless of SYY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.58% trails the industry average.
  • You can view the full analysis from the report here: SYY