Sysco Corporation ( SYY ) shares are trading higher on Tuesday.

The company reported first quarter adjusted earnings per share of $1.09, missing the street view of $1.13. Quarterly sales of $20.50 billion beat the analyst consensus of $20.463 billion.

Sales rose by 4.4%, while U.S. Foodservice volume increased by 2.7%.

Operating income increased modestly by 0.5% to $808 million, and adjusted operating income rose by 2.2% to $873 million.

Gross profit increased 2.9% to $3.8 billion, while gross margin decreased 27 basis points to 18.3%. Product cost inflation was 2.2% at the total enterprise level, as measured by the estimated change in Sysco’s product costs, primarily in the poultry and dairy categories.

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“International remains a growth vector, which delivered an 8.6% increase in operating income and a 12.1% increase in adjusted operating income for the quarter, and specialty continues to win in the marketplace, with total team selling continuing to pick up pace and momentum,” said Kevin Hourican, Sysco’s chair of the board and chief executive officer.

As of the end of the quarter, the company had a cash balance of $733 million.

The company reiterated its FY25 outlook.

“First quarter results included an improved exit rate during the month of September and a strong pipeline of investments and initiatives, adding to our confidence in our full year guidance of sales growth of 4%-5% and adjusted EPS growth of 6%-7%,” said Kenny Cheung, Sysco’s chief financial officer.

Price Action: SYY shares are trading higher by 0.3% to $75.35 at last check Tuesday.

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