Overview

* Sysco ( SYY ) fiscal Q1 sales grow 3.2%, beating analyst expectations

* Adjusted EPS for fiscal Q1 rises 5.5%, exceeding analyst expectations

* Operating income for fiscal Q1 decreased 1.0% to $800 mln

Outlook

* Sysco ( SYY ) confident of full-year sales growth of 3%-5%

* Sysco ( SYY ) projects full-year adjusted EPS growth of 1%-3%

* Excluding compensation impact, Sysco ( SYY ) sees EPS growth of 5%-7%

Result Drivers

* PRODUCT COST MANAGEMENT - Sysco's ( SYY ) gross profit increase was driven by effective management of product cost inflation and strategic sourcing efficiencies

* USFS SEGMENT GROWTH - U.S. Foodservice Operations saw slight volume growth and continued investments in capacity and headcount, leading to a sales increase

* INTERNATIONAL SEGMENT PERFORMANCE - International Foodservice Operations achieved strong margin management and local volume growth, boosting sales by 4.5%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $21.10 $21.07

bln bln (12

Analysts

)

Q1 Beat $1.15 $1.12

Adjusted (14

EPS Analysts

)

Q1 EPS $0.99

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the food retail & distribution peer group is "buy"

* Wall Street's median 12-month price target for Sysco Corp ( SYY ) is $88.00, about 11.4% above its October 27 closing price of $78.00

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)