Performance Food Group (NYSE:PFGC) Releases Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Performance Food Group narrowly missed expectations: Quarterly EPS was $1.59 versus the $1.60 consensus, while revenue reached $18.03 billion against expectations of $18.11 billion. Revenue still increased 6.7% year over year, and net income rose 23.4% to $162.3 million.
• Management issued a positive fiscal 2027 outlook, projecting revenue of $72.5 billion–$73.0 billion and adjusted EBITDA of $2.125 billion–$2.225 billion. Growth is expected across all three segments, supported by volume gains, procurement initiatives, private-label expansion and M&A synergies.
• Shares fell 3.0% amid cost concerns and the earnings miss: Higher diesel expenses and Cheney Brothers integration costs are expected to pressure results early in fiscal 2027, while the company’s net margin remained thin at 0.49%.

Performance Food Group (NYSE:PFGC - Get Free Report) issued its earnings results on Wednesday. The food distribution company reported $1.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.60 by ($0.01), FiscalAI reports. The company had revenue of $18.03 billion during the quarter, compared to analysts' expectations of $18.11 billion. Performance Food Group had a net margin of 0.49% and a return on equity of 15.33%. The company's quarterly revenue was up 6.7% on a year-over-year basis. During the same period last year, the business posted $0.84 earnings per share.

Here are the key takeaways from Performance Food Group's conference call:

• Strong fourth-quarter performance: Net sales increased 6.4%, net income rose 23.4% to $162.3 million, and adjusted EBITDA grew 7.4% to $587.5 million, near the top end of guidance.
• All three segments are expected to grow in fiscal 2027. Foodservice reported 5.8% independent case growth, Convenience benefited from Love’s and RaceTrac wins, and Specialty’s sales growth accelerated to 6.6% in the fourth quarter.
• Management guided to fiscal 2027 sales of $72.5 billion-$73.0 billion and adjusted EBITDA of $2.125 billion-$2.225 billion, representing midpoint growth of 7.2% and 12.7%, respectively, including the benefit of a 53rd week.
• Procurement initiatives, private-brand expansion, operational efficiency efforts, and M&A synergies are expected to support margin improvement; management remains confident it can meet or exceed the high end of its $120 million-$125 million procurement-synergy target by fiscal 2028.
• Elevated diesel costs contributed approximately $16 million of expense in the fourth quarter, while inflation is expected to remain in the low- to mid-single digits in fiscal 2027. Fuel pressure and residual costs related to the Cheney Brothers integration are expected to weigh on early-year results before easing in the second half.

Performance Food Group Stock Down 3.0%

Shares of NYSE:PFGC traded down $3.43 during midday trading on Wednesday, hitting $110.53. 2,259,705 shares of the company's stock were exchanged, compared to its average volume of 1,963,349. The company has a debt-to-equity ratio of 1.40, a current ratio of 1.52 and a quick ratio of 0.68. Performance Food Group has a 12 month low of $80.82 and a 12 month high of $117.47. The company has a market cap of $17.36 billion, a PE ratio of 52.63, a price-to-earnings-growth ratio of 1.43 and a beta of 0.91. The stock has a 50 day moving average price of $109.16 and a 200-day moving average price of $97.73.

Insider Activity at Performance Food Group

In related news, insider A Brent King sold 6,111 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $105.00, for a total transaction of $641,655.00. Following the transaction, the insider directly owned 44,260 shares of the company's stock, valued at $4,647,300. This trade represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Erika T. Davis sold 2,595 shares of the company's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $110.00, for a total transaction of $285,450.00. Following the completion of the sale, the insider directly owned 40,446 shares of the company's stock, valued at $4,449,060. The trade was a 6.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 27,187 shares of company stock valued at $2,743,695 over the last 90 days. Insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC lifted its holdings in Performance Food Group by 440.2% during the second quarter. EverSource Wealth Advisors LLC now owns 659 shares of the food distribution company's stock valued at $58,000 after purchasing an additional 537 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Performance Food Group in the fourth quarter worth approximately $67,000. AlphaCentric Advisors LLC bought a new position in Performance Food Group during the fourth quarter valued at approximately $82,000. Smartleaf Asset Management LLC boosted its stake in shares of Performance Food Group by 16.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,012 shares of the food distribution company's stock worth $91,000 after buying an additional 143 shares during the last quarter. Finally, Johnson Financial Group Inc. purchased a new stake in Performance Food Group in the third quarter worth about $114,000. Hedge funds and other institutional investors own 96.87% of the company's stock.

Key Headlines Impacting Performance Food Group

Here are the key news stories impacting Performance Food Group this week:

• Positive Sentiment: Fiscal fourth-quarter net sales increased approximately 6.4% to $18.0 billion, while reported net income rose 23.4% to $162.3 million. Total case volume grew 3.5%, including an 8.0% increase in independent foodservice volume, and gross profit climbed 8.3%. PFGC reports fiscal Q4 net sales of $18.0 billion
• Positive Sentiment: Management projected fiscal 2027 revenue of approximately $72.5 billion to $73.0 billion and adjusted EBITDA of $2.125 billion to $2.225 billion. The revenue outlook is close to Wall Street’s $72.6 billion expectation. Fiscal 2027 outlook
• Neutral Sentiment: First-quarter fiscal 2027 revenue guidance of $17.9 billion to $18.1 billion was generally consistent with the $18.1 billion consensus estimate, suggesting stable near-term demand but little guidance-related upside.
• Neutral Sentiment: U.S. July headline CPI rose 0.1%, matching expectations, while stock futures moved higher. The in-line inflation data may support broader market sentiment but is not specific to PFGC. Earnings Results in Focus
• Negative Sentiment: Adjusted fiscal fourth-quarter earnings of $1.59 per share missed consensus estimates of $1.62, while revenue of $18.03 billion fell short of the $18.11 billion estimate. The earnings miss is the clearest reason for the negative stock reaction. Performance Food Group Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Fourth-quarter results reflected higher costs and prices, while the company’s net margin remained thin at 0.49%, leaving investors sensitive to execution and margin pressure. Performance Food Sales, Profit Rise on Higher Prices

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Wells Fargo & Company increased their price objective on shares of Performance Food Group from $115.00 to $130.00 and gave the stock an "overweight" rating in a report on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $123.00 price objective on shares of Performance Food Group in a report on Thursday, May 7th. Barclays lifted their target price on shares of Performance Food Group from $105.00 to $115.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. TD Cowen assumed coverage on shares of Performance Food Group in a research report on Tuesday, July 7th. They issued a "buy" rating and a $128.00 target price for the company. Finally, Citigroup boosted their price target on shares of Performance Food Group from $135.00 to $143.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Performance Food Group presently has a consensus rating of "Moderate Buy" and an average price target of $123.82.

About Performance Food Group

Performance Food Group Company NYSE: PFGC is a leading foodservice distribution company headquartered in Richmond, Virginia. The company operates through multiple segments, offering a broad range of products including fresh, frozen and dry foods, as well as non-food items such as supplies, paper goods and equipment. Performance Food Group serves a diverse customer base that encompasses independent and multi-unit restaurants, healthcare facilities, hospitality venues, schools, and other institutional customers.

Through its national broadline division, Performance Food Group provides next-day delivery of products sourced from both company-owned processing facilities and third-party suppliers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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