- Sysco Corp (NYSE:SYY) reported third-quarter FY22 sales growth of 42.9% year-on-year to $16.90 billion, beating the consensus of $15.91 billion.
- The U.S. Foodservice operations sales rose 43.6% Y/Y, and International Foodservice sales grew 64.5%.
- Gross profit increased 42% Y/Y to $3.0 billion, and the gross margin fell 12 basis points to 17.8%.
- The operating margin improved 94 basis points to 2.9%, and operating income for the quarter rose 110.1% to $495.7 million. Non-GAAP operating margin improved 124 basis points to 3.4%.
- Adjusted EBITDA increased 72.8% Y/Y to $755.8 million in the quarter.
- Adjusted EPS of $0.71 beat the analyst consensus of $0.55.
- Sysco held $876.1 million in cash and equivalents as of April 2, 2022. Cash provided by operating activities for the nine months totaled $745.9 million.
- "Sysco delivered strong results this quarter, reflecting sequential top-line improvements and accelerating market share gains," said CEO Kevin Hourican.
- Outlook: SYY raised its FY22 adjusted EPS guidance from $3.00-$3.10 to $3.16-$3.26, against the consensus of $3.08.
- Price Action: SYY shares are trading higher by 6.68% at $86.50 on the last check Tuesday.
