Sysco Corporation
(
SYY
), a global leader in selling, marketing and distribution of food
products, is set to unveil its fourth quarter and fiscal 2012
results on August 13, 2012, before the market opens. The Zacks
Consensus Estimate for fourth quarter earnings is 54 cents per
share on revenues of $11 billion. The Zacks Consensus Estimate for
fiscal 2012 earnings is $1.93 per share on revenues of $42 billion.
Third Quarter 2012 Recap
Sysco delivered third-quarter 2012 earnings of 49 cents per share,
which exceeded the Zacks Consensus Estimate by 17% on a
better-than-expected top-line performance. Reported earnings
barely beat the prior-year earnings by 2%.
Sysco's sales increased 7.6% on a year-over-year basis to $10.5
billion in the third-quarter of 2012. Acquisitions added 0.7% to
sales growth, while unfavorable currency translation adversely
impacted sales by 0.2%. Sales inched past the Zacks Consensus
Estimate of $10.47 billion on better volumes.
For further details please read:
Sysco Beats Estimates
Agreement of Estimate Revisions
None of the 9 estimates for Sysco's fourth quarter 2012 earnings
were revised in the last 7 days. Over the last 30 days, only 1 out
of the 9 estimates moved in the downward direction.
For the full year 2012, none of the 11 estimates were revised in
the last 7 days. Over the last 30 days, 1 out of the 11 estimates
for full-year 2012 moved in the downward direction.
The downward movements of the estimates were prompted by increased
food costs, which is likely to hurt margins in the near future.
Magnitude of Estimate Revisions
The Zacks Consensus Estimate for the fourth quarter of fiscal 2012
remained static at 54 cents over the last 7 days. However, over the
last 30 days, the estimate for the fourth quarter declined by a
penny from 55 cents.
The Zacks Consensus Estimate for fiscal 2012 has remained static at
$1.93 per share in the last 7 days. However, the estimate has
declined by a penny from $1.94 in the last 30 days.
Surprise History
Sysco Corporation surpassed the Zacks Consensus Estimate in all the
last three quarters. The company results were in line with the
Zacks Consensus Estimate in the fourth quarter of fiscal 2011. The
earnings surprise ranges from 0.00% to 16.67%, with the average
earnings surprise being 9.00% in the trailing four quarters.
Our Recommendation
Currently, we have a Neutral recommendation on Sysco
Corporation. The stock carries a Zacks #4 Rank (a short-term Sell
rating).
We appreciate the company's strategy of growth through acquisitions
and its efforts to reduce cost and improve efficiency.
However, we are concerned about rising costs due to fuel price
hikes and other inputs, which in turn hurt margins.
SYSCO CORP (SYY): Free Stock Analysis Report
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