Performance Food Group (NYSE:PFGC) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Performance Food Group (NYSE:PFGC) announced its earnings results on Wednesday. The food distribution company reported $1.59 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.01), FiscalAI reports. Performance Food Group had a return on equity of 15.33% and a net margin of 0.49%.The business had revenue of $18.03 billion for the quarter, compared to the consensus estimate of $18.11 billion. During the same quarter in the previous year, the company posted $0.84 EPS. Performance Food Group’s revenue for the quarter was up 6.7% on a year-over-year basis.

Here are the key takeaways from Performance Food Group’s conference call:

• Strong fourth-quarter performance: Net sales increased 6.4%, net income rose 23.4% to $162.3 million, and adjusted EBITDA grew 7.4% to $587.5 million, near the top end of guidance.
• All three segments are expected to grow in fiscal 2027. Foodservice reported 5.8% independent case growth, Convenience benefited from Love’s and RaceTrac wins, and Specialty’s sales growth accelerated to 6.6% in the fourth quarter.
• Management guided to fiscal 2027 sales of $72.5 billion-$73.0 billion and adjusted EBITDA of $2.125 billion-$2.225 billion, representing midpoint growth of 7.2% and 12.7%, respectively, including the benefit of a 53rd week.
• Procurement initiatives, private-brand expansion, operational efficiency efforts, and M&A synergies are expected to support margin improvement; management remains confident it can meet or exceed the high end of its $120 million-$125 million procurement-synergy target by fiscal 2028.
• Elevated diesel costs contributed approximately $16 million of expense in the fourth quarter, while inflation is expected to remain in the low- to mid-single digits in fiscal 2027. Fuel pressure and residual costs related to the Cheney Brothers integration are expected to weigh on early-year results before easing in the second half.

Performance Food Group Stock Performance

PFGC traded down $4.93 during trading hours on Wednesday, reaching $109.03. The company’s stock had a trading volume of 2,360,864 shares, compared to its average volume of 1,963,759. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.68 and a current ratio of 1.52. The company’s 50-day moving average is $109.16 and its 200-day moving average is $97.73. Performance Food Group has a 52 week low of $80.82 and a 52 week high of $117.47. The firm has a market cap of $17.13 billion, a PE ratio of 51.92, a price-to-earnings-growth ratio of 1.43 and a beta of 0.91.

Insider Transactions at Performance Food Group

In other Performance Food Group news, insider Erika T. Davis sold 2,595 shares of Performance Food Group stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $110.00, for a total value of $285,450.00. Following the completion of the sale, the insider owned 40,446 shares in the company, valued at $4,449,060. The trade was a 6.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider A Brent King sold 6,111 shares of the company’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $105.00, for a total value of $641,655.00. Following the sale, the insider owned 44,260 shares of the company’s stock, valued at approximately $4,647,300. The trade was a 12.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 27,187 shares of company stock worth $2,743,695. Company insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Kestra Advisory Services LLC bought a new position in Performance Food Group during the 4th quarter valued at $136,000. UMB Bank n.a. lifted its stake in shares of Performance Food Group by 10.3% during the 4th quarter. UMB Bank n.a. now owns 1,941 shares of the food distribution company’s stock valued at $175,000 after buying an additional 181 shares in the last quarter. Quarry LP lifted its position in shares of Performance Food Group by 172.2% during the fourth quarter. Quarry LP now owns 1,938 shares of the food distribution company’s stock worth $174,000 after acquiring an additional 1,226 shares in the last quarter. Johnson Financial Group Inc. increased its holdings in shares of Performance Food Group by 23.8% in the fourth quarter. Johnson Financial Group Inc. now owns 1,362 shares of the food distribution company’s stock worth $122,000 after purchasing an additional 262 shares during the period. Finally, iSAM Funds UK Ltd bought a new position in shares of Performance Food Group during the third quarter valued at about $161,000. Institutional investors own 96.87% of the company’s stock.

Trending Headlines about Performance Food Group

Here are the key news stories impacting Performance Food Group this week:

• Positive Sentiment: Fiscal fourth-quarter net sales increased approximately 6.4% to $18.0 billion, while reported net income rose 23.4% to $162.3 million. Total case volume grew 3.5%, including an 8.0% increase in independent foodservice volume, and gross profit climbed 8.3%. PFGC reports fiscal Q4 net sales of $18.0 billion
• Positive Sentiment: Management projected fiscal 2027 revenue of approximately $72.5 billion to $73.0 billion and adjusted EBITDA of $2.125 billion to $2.225 billion. The revenue outlook is close to Wall Street’s $72.6 billion expectation. Fiscal 2027 outlook
• Neutral Sentiment: First-quarter fiscal 2027 revenue guidance of $17.9 billion to $18.1 billion was generally consistent with the $18.1 billion consensus estimate, suggesting stable near-term demand but little guidance-related upside.
• Neutral Sentiment: U.S. July headline CPI rose 0.1%, matching expectations, while stock futures moved higher. The in-line inflation data may support broader market sentiment but is not specific to PFGC. Earnings Results in Focus
• Negative Sentiment: Adjusted fiscal fourth-quarter earnings of $1.59 per share missed consensus estimates of $1.62, while revenue of $18.03 billion fell short of the $18.11 billion estimate. The earnings miss is the clearest reason for the negative stock reaction. Performance Food Group Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Fourth-quarter results reflected higher costs and prices, while the company’s net margin remained thin at 0.49%, leaving investors sensitive to execution and margin pressure. Performance Food Sales, Profit Rise on Higher Prices

Analysts Set New Price Targets

PFGC has been the subject of several analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Performance Food Group in a research report on Wednesday, June 24th. Morgan Stanley upped their target price on shares of Performance Food Group from $120.00 to $131.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Barclays boosted their price target on shares of Performance Food Group from $105.00 to $115.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Guggenheim raised their target price on shares of Performance Food Group from $115.00 to $125.00 and gave the stock a “buy” rating in a report on Monday, June 29th. Finally, Citigroup upped their target price on shares of Performance Food Group from $135.00 to $143.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Eleven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $123.82.

Performance Food Group Company Profile

Performance Food Group Company (NYSE: PFGC) is a leading foodservice distribution company headquartered in Richmond, Virginia. The company operates through multiple segments, offering a broad range of products including fresh, frozen and dry foods, as well as non-food items such as supplies, paper goods and equipment. Performance Food Group serves a diverse customer base that encompasses independent and multi-unit restaurants, healthcare facilities, hospitality venues, schools, and other institutional customers.

Through its national broadline division, Performance Food Group provides next-day delivery of products sourced from both company-owned processing facilities and third-party suppliers.