Sysco (NYSE:SYY) Posts Quarterly Earnings Results, Hits Estimates

Sysco (NYSE:SYY) released its earnings results on Tuesday. The company reported $1.19 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.19, FiscalAI reports. The firm had revenue of $21.74 billion for the quarter, compared to the consensus estimate of $22.02 billion. Sysco had a return on equity of 95.05% and a net margin of 2.08%. The firm’s revenue was up 2.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.15 EPS.

Sysco Stock Performance

Sysco stock traded down $3.60 during midday trading on Tuesday, hitting $78.14. 1,355,813 shares of the company were exchanged, compared to its average volume of 3,978,873. The business has a fifty day simple moving average of $80.49 and a two-hundred day simple moving average of $80.54. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. The firm has a market capitalization of $38.44 billion, a PE ratio of 21.35, a price-to-earnings-growth ratio of 2.31 and a beta of 0.66. Sysco has a fifty-two week low of $68.19 and a fifty-two week high of $91.85.

Sysco Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 2nd were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Friday, October 2nd. Sysco’s dividend payout ratio (DPR) is 60.11%.

Insider Transactions at Sysco

In other Sysco news, EVP Ronald Phillips sold 7,350 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $83.61, for a total value of $614,533.50. Following the completion of the transaction, the executive vice president directly owned 38,650 shares of the company’s stock, valued at approximately $3,231,526.50. The trade was a 15.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 15,525 shares of company stock valued at $1,299,736 over the last three months. Insiders own 0.55% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have commented on SYY. Piper Sandler lifted their price target on Sysco from $77.00 to $84.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. UBS Group increased their price objective on Sysco from $90.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Citigroup restated a “neutral” rating on shares of Sysco in a research note on Monday, October 26th. Melius Research cut Sysco from a “hold” rating to a “sell” rating in a research note on Tuesday, July 7th. Finally, Morgan Stanley lifted their target price on Sysco from $88.00 to $91.00 and gave the stock an “equal weight” rating in a report on Thursday, October 15th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Sysco has an average rating of “Moderate Buy” and an average target price of $90.42.

About Sysco

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.