LONDON, November 26, 2014 /PRNewswire/ --
Investor-Edge.com has issued free earnings review on Sysco Corp. ( NYSE: SYY). On November 03, 2014, the company reported its financial results for Q1 FY15 (period ended September 27, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Sysco Corp. (Sysco). For Q1 FY15, the company's sales increased 6.2% on a Y-o-Y basis, and its operating income decreased by 2.6% from Q1 FY14. Bill DeLaney, President and CEO of Sysco, stated that the company is pleased with the solid operating performance it delivered in Q1 FY15 in the midst of ongoing challenging market conditions. He added that while Sysco was challenged with expense management in certain aspects of its business, it generated 2% case volume growth and managed acute inflationary pressures very effectively. Our free coverage report can be accessed at:
Sysco's sales for the reported quarter increased to $12.45 billion, from $11.71 billion in Q1 FY14. The company's reported sales exceeded Bloomberg analysts' forecasts of $12.37 billion. The company's food cost inflation for Q1 FY15 stood at 4.9%, as measured by the estimated change in the company's product costs, primarily driven by inflation in the meat, dairy and seafood categories. In addition Sysco's sales from acquisitions (within the last 12 months) increased sales by 0.6%, while the impact of changes in foreign exchange rates for Q1 FY15 decreased sales by 0.5% on a Y-o-Y basis. Case volume for the company's Broadline and SYGMA operations combined grew 2.3% Y-o-Y during Q1 FY15, including acquisitions. The free research on SYY can be downloaded as in PDF format at:
The company's gross profit for Q1 FY15 grew 6.0% to $2.19 billion, from $2.07 billion in Q1 FY14, while its gross margin declined 4 basis points to 17.59% on Y-o-Y basis. Sysco's operating expenses in Q1 FY15 increased 8.6% Y-o-Y to $1.72 billion, primarily due to a $67 million increase in payroll expense and a $41 million increase in certain items primarily related to merger and integration planning costs. After adjusting for certain items, adjusted operating expense grew 6.0% from Q1 FY14. The company's operating income during the reported quarter declined to $465.61 million from $478.20 million in Q1 FY14. Further, Sysco's net earnings narrowed to $278.81 million, or $0.47 per diluted share, in Q1 FY15, from $285.59 million, or $0.48 per diluted share, in Q1 FY14. Analysts from Bloomberg had expected the company to report net earnings of $304.33 million or $0.51 per share in Q1 FY15. Meanwhile, on an adjusted basis, Sysco's Q1 FY15 net earnings increased to $308.90 million, or $0.52 per diluted share, from $287.06 million, or $0.49 per diluted share, in Q1 FY14.
Mr. DeLaney informed that Sysco's improved performance during the quarter was due in part to the benefits it realized from its portfolio of business transformation initiatives, especially category management.
For Q1 FY15, the company's dividend was $0.29 per common share, compared to $0.28 per common share in Q1 FY14. Sign up and read the free analyst's notes on SYY at:
On the day of the earnings release, November 03, 2014, Sysco's stock ended the session at $37.49, down 2.72%. Although the stock has moved both ways since then, the gains have outweighed the losses so far. On the last close, Tuesday, November 25, 2014, the stock finished at $39.46, 0.23% below its previous day's closing price of $39.55, after vacillating between $39.34 and $39.67. A total of 1.97 million shares were traded, which was below its three months average volume of 3.12 million shares. Over the last one month and over the previous three months, the company's shares have advanced 3.73% and 4.45%, respectively. Further, the stock has advanced 9.31% since the start of this year. Shares in Sysco closed above their 50-day and 200-day moving averages of $37.88 and $37.02, respectively. Furthermore, the stock traded at a PE ratio of 21.95 and has a Relative Strength Index (RSI) of 65.59. Visit Investor-Edge and access the latest research on SYY at:
Sneak Peek to Corporate Insider Trading
In the last one month, there were 25 insider transactions made by 9 individuals. Between November 13th, 2014 and November 20th, 2014, a total of 72,984 shares have been disposed at an average price of $38.75 per share, worth $2.83 million. Between November 13th, 2014 and November 17th, 2014, William J. DeLaney III, President and CEO at Sysco, disposed 28,016 shares at an average price of $38.71 per share. Meanwhile, between November 13th, 2014 and November 20th, 2014 Michael W. Green, Executive Vice President and President - Foodservice Operations at Sysco, sold 12,534 shares at an average price of $38.88 per share. On November 20th, 2014, Mr. Green purchased 7,646 shares at an average price of $26.16 per share. Additionally, Robert C. Kreidler, Executive Vice President and CFO at Sysco, disposed 10,332 shares at an average price of $38.69 per share between November 13th, 2014 and November 17th, 2014. Complimentary in-depth research on SYY is available at:
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