) reached a 52-week high of $35.09 on Mar 25 and eventually
closed at $35.02, reflecting a year-to-date return of 9.8%. The
company beat its previous 52-week high of $33.88 attained on Mar
Shares of this global food products maker and distributor have
been riding high since it reported solid second quarter fiscal
2013 results on Feb 4. The company's long-term estimated EPS
growth rate is 7.47%. Average volume of shares traded over the
last three months came in at approximately 3,963K.
The company's strategy to grow through acquisitions and its
efforts to reduce costs and improve efficiency drove Sysco shares
to achieve a new high.
Sysco's second quarter fiscal 2013 results outperformed the
Zacks Consensus Estimate by 19.5%. Adjusted earnings of 49 cents
also exceeded the prior-year quarter earnings by 4.3%, driven by
solid top-line growth, gains from acquisitions, prudent expense
management and moderating input cost environment.
In fact, Sysco has surpassed the Zacks Consensus Estimate in
six out of the last eight quarters, missing it on one occasion
and matching in one quarter, thus posting an average surprise of
Sysco's sales grew 5.4% on a year-over-year basis to $10.8
billion in the second quarter, driven by volume growth. Second
quarter sales also beat the Zacks Consensus Estimate of $10.7
billion. Acquisitions and currency translation also impacted
sales favorably. Higher sales also drove the company's gross
profit and adjusted operating profits despite higher adjusted
During the quarter, Sysco completed the acquisition of four
independent foodservice companies, whose combined aggregate
annual revenues amounted to $520 million in fiscal 2012. Sysco
intends to achieve sales growth of 0.5% to 1% through its
acquisitions over the long term.
Other Stocks to Consider
Sysco holds a Zacks Rank #4 (Sell). However, there are other
favorable stocks in the retail and wholesale sector that are
worth considering. These include
Natural Grocers By Vitamin Cotta
). Safeway holds a Zacks Rank #1 (Strong Buy), while Natural
Grocers carries a Zacks Rank #2 (Buy).
NATURAL GROCERS (NGVC): Free Stock Analysis
SAFEWAY INC (SWY): Free Stock Analysis Report
SYSCO CORP (SYY): Free Stock Analysis Report
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