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NEW YORK - Sysco Corporation (NYSE:SYY) reported fiscal second quarter earnings that met analyst estimates, while revenue slightly exceeded expectations. However, shares fell 3.7% following the release as investors reacted to the results premarket Tuesday.
The food distribution giant posted adjusted earnings per share of $0.93 for the quarter ended December 28, 2024, in line with the analyst consensus of $0.92. Revenue came in at $20.2 billion, edging past estimates of $20.11 billion and representing a 4.5% increase YoY.
"Sysco delivered another quarter of disciplined financial performance fueled by top and bottom line growth that was consistent with expectations," said Kevin Hourican, Sysco's Chair of the Board and Chief Executive Officer.
The company's U.S. Foodservice Operations segment saw sales rise 4.1% to $14.0 billion, with total case volume growing 1.4%. However, local case volume within U.S. Foodservice decreased 0.9%.
Sysco reiterated its full-year fiscal 2025 guidance, projecting sales growth of 4-5% and adjusted EPS growth of 6-7%. The company also announced an increase in cash returns to shareholders to approximately $2.25 billion for fiscal 2025, including $1.25 billion in share repurchases and $1 billion in dividends.
"We are encouraged by the momentum in our business and are reiterating our full year guidance," said Kenny Cheung, Sysco's Chief Financial Officer.
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