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US Foods beats Q3 earnings estimates, raises full-year outlook

Published 07/11/2024, 13:16
USFD
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ROSEMONT, Ill. - US Foods Holding Corp . (NYSE:USFD) reported better-than-expected third quarter earnings and raised its full-year guidance, sending shares up 0.46% in premarket trading Thursday.

The foodservice distributor posted adjusted earnings per share of $0.85, topping analyst estimates of $0.83. Revenue grew 6.8% YoY to $9.7 billion, slightly below the consensus of $9.72 billion but driven by a 3.8% increase in total case volume.

"We delivered strong results in the third quarter despite the softer macro environment and weather-related challenges which pressured industry case volumes," said CEO Dave Flitman. "We executed our strategy-driven operating model to deliver top line growth, a double-digit Adjusted EBITDA increase and margin expansion."

US Foods saw independent restaurant case volume rise 4.1% in Q3. Adjusted EBITDA jumped 13.2% to $455 million, with adjusted EBITDA margin expanding 27 basis points to 4.7%.

For the full year 2024, the company now expects adjusted EPS of $3.05-$3.15, up from its previous outlook of $3.00-$3.20 and above the $3.06 analyst consensus. US Foods also tightened its revenue guidance to $37.7-$38.0 billion.

The company repurchased $580 million worth of shares during the quarter. Net debt stood at $4.7 billion at quarter-end, with a net leverage ratio of 2.8x.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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