Why Food Products Distributor Sysco's Shares Are Falling Today
Portfolio Pulse from Shivani Kumaresan
Sysco Corp (NYSE:SYY) shares fell after reporting Q3 FY24 sales of $19.38 billion, missing analyst estimates of $19.74 billion. Despite a sales miss, gross profit rose 5.2% Y/Y to $3.6 billion, and adjusted EPS of $0.96 beat estimates of $0.95. The company announced leadership changes, with Kevin Hourican appointed as Chair of the Board. Sysco remains confident in its FY24 adjusted EPS growth guidance of 5-10%.
April 30, 2024 | 4:18 pm
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Sysco Corp reported lower-than-expected Q3 FY24 sales but saw an increase in gross profit and beat EPS estimates. Leadership changes were announced, and the company remains confident in its FY24 EPS growth guidance.
Sysco's stock price fell due to the sales miss, despite positive aspects like gross profit increase and EPS beat. Leadership changes and confidence in future EPS growth may stabilize the stock in the longer term, but the immediate reaction is negative.
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IMPORTANCE 90
RELEVANCE 100