Sysco Reports Robust Demand – Stock Prices Rally
By Sam Boughedda
Investing.com — Sysco Corporation (NYSE:) the stock price surged on Tuesday, buoyed by its third-quarter results beating high and low expectations.
The foodservice distributor brought in $16.9 billion, beating the $15.9 billion forecast for the third quarter. Additionally, earnings per share were well above estimates at $0.71 per share.
Gross profit rose 42% to $3 billion from a year ago. According to the company, gross margin was driven by higher volumes and high inflation rates which were effectively managed.
The company said demand for food outside the home was “strong” in February and March as it recovered from the impact of Omicron.
“Sysco delivered strong results this quarter, reflecting sequential improvements in revenue and accelerating market share gains,” said Sysco President and CEO Kevin Hourican.
Hourican added, “Our earnings performance this quarter exceeded our expectations and demonstrates the progress we are making in advancing our strategy.”
The company announced an upbeat outlook for the year, with adjusted EPS expected to be between $3.16 and $3.26.
Sysco stock jumped Tuesday morning, hitting a high of $90.74 per share. It has since pulled back slightly, now up 8.4% at $87.90.