Earnings Briefing and Report - Sysco

LONDON, March 3, 2015 /PRNewswire/ --

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Investor-Edge.com has issued free earnings report on Sysco Corp. (NYSE: SYY). On February 02, 2015, the company reported its financial results for Q2 FY15 and H1 FY15 (period ended December 27, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Sysco&d=03-Mar-2015&s=SYY to read our free earnings review on Sysco Corporation (Sysco). During Q2 FY15, Sysco's sales increased 7.6% Y-o-Y, and its non-GAAP diluted earnings per share grew 5.1% Y-o-Y. President and CEO of Sysco, William (Bill) J. DeLaney, III, stated that the company's second quarter financial results were generally in-line with its expectations, as management made consistent progress on its business transformation initiatives and did a good job of remaining focused on the needs of its customers. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Sysco&d=03-Mar-2015&s=SYY

Earnings Overview 

During Q2 FY15, Sysco's sales increased to $12.09 billion from $11.24 billion in Q2 FY14. The company's sales exceeded Bloomberg analysts' forecasts of $11.94 billion during the reported quarter. Sysco's food cost inflation for Q2 FY15 stood at 6.0%, as measured by the estimated change in the company's product costs, and it was primarily driven by inflation in the meat and dairy categories. In addition, Sysco's sales from acquisitions (within the last 12 months) increased sales by 0.8% Y-o-Y, while the impact of changes in foreign exchange rates for Q2 FY15 decreased sales by 0.9% Y-o-Y. In Q2 FY15, case volume for the company's Broadline and SYGMA operations combined grew 3.6% Y-o-Y, including acquisitions, but excluding acquisitions it saw growth of approximately 3.3% Y-o-Y. Free research on SYY can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Sysco&d=03-Mar-2015&s=SYY

Sysco's gross profit for Q2 FY15 grew 6.1% to $2.09 billion from $1.96 billion in Q2 FY14, while its gross margin declined 23 basis points Y-o-Y to 17.25%. Sysco's GAAP operating expenses in Q2 FY15 increased by $156.52 million, or 9.7% Y-o-Y, to $1.77 billion, primarily due to a $115 million increase in payroll expense and a $48 million increase in certain items  related to higher merger and integration planning costs. Furthermore, the company's GAAP operating income during Q2 FY15 decreased to $315.45 million from $351.78 million in Q2 FY14.

For Q2 FY15, GAAP net earnings stood at $157.98 million, or $0.27 per diluted share, compared to $210.84 million, or $0.36 per diluted share, in Q2 FY14. Analysts from Bloomberg had expected the company to report GAAP net earnings of $243.25 million, or $0.39 per share, in Q2 FY15. Moreover, Sysco's Q2 FY15 non-GAAP net earnings increased to $244.62 million, or $0.41 per diluted share, from $231.77 million, or $0.39 per diluted share, in Q2 FY14. Sign up and read the free analyst's notes on SYY at:

http://get.Investor-Edge.com/pdf/?c=Sysco&d=03-Mar-2015&s=SYY

In H1 FY15, Sysco reported sales of $24.53 billion, compared to $22.95 billion in H1 FY14. Sysco's food cost inflation for H1 FY15 stood at 5.4%, primarily driven by inflation in the meat and dairy categories. The company's gross profit for H1 FY15 improved 6.0% to $4.27 billion from $4.03 billion in H1 FY14, while its gross margin fell 14 basis points Y-o-Y to 17.42% in H1 FY15.

During H1 FY15, Sysco's GAAP operating income declined to $781.06 million from $829.98 million in H1 FY14. The company's GAAP net earnings fell to $436.79 million, or $0.73 per diluted share, in H1 FY15 from $496.43 million, or $0.84 per diluted share, in H1 FY14. However, Sysco's H1 FY15 non-GAAP net earnings increased to $553.61 million, or $0.93 per diluted share, from $518.56 million, or $0.88 per diluted share, in H1 FY14.

On February 2, 2015, Sysco announced a definitive agreement to divest certain assets to Performance Food Group contingent upon the closing of its proposed merger with US Foods. Visit Investor-Edge and access the latest research on SYY at:

http://get.Investor-Edge.com/pdf/?c=Sysco&d=03-Mar-2015&s=SYY

Stock Performance  

On the day of the earnings release, February 02, 2015, Sysco's stock lost 1.89% to end the session at $38.43. Since then, the stock has moved both ways with gains outperforming losses. On the last close, Monday, March 02, 2015, the company's shares finished 0.05% lower at $38.97, after vacillating between $38.76 and $39.09. A total of 4.90 million shares were traded which was above its three months average volume of 4.25 million shares. Over the last one month and over the past on year, the company's shares have advanced 1.41% and 8.19%, respectively. However, the stock has fallen by 2.53% in the previous three months. Shares in Sysco are trading above their 200-day moving average of $38.26. Furthermore, the stock traded at a PE ratio of 22.72 and has a Relative Strength Index (RSI) of 43.66.

Sneak Peek to Corporate Insider Trading 

In the last one month, Sysco has reported only one corporate insider transaction to the U.S. Securities and Exchange Commission (SEC). On February 12, 2015, Mr. DeLaney, disposed 2,575 shares at an average price of $38.92 per share and for a total value of $100,219. Complimentary in-depth research on SYY is available at:

http://get.Investor-Edge.com/pdf/?c=Sysco&d=03-Mar-2015&s=SYY

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