Performance Food Group (NYSE:PFGC) Shares Gap Down on Disappointing Earnings

Key Points

• Performance Food Group shares fell sharply, opening at $105.79 versus the prior close of $113.96, after the company narrowly missed quarterly earnings and revenue estimates.
• Quarterly adjusted EPS was $1.59 versus the $1.60 consensus, while revenue reached $18.03 billion against expectations of $18.11 billion. Revenue still grew 6.7% year over year, and net income rose 23.4% to $162.3 million.
• Management’s fiscal 2027 outlook was broadly in line with analyst expectations, but near-term guidance offered limited upside. Despite the earnings miss, analysts maintain a consensus “Moderate Buy” rating with an average price target of $123.82.

Performance Food Group Company (NYSE:PFGC - Get Free Report)'s stock price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $113.96, but opened at $105.79. Performance Food Group shares last traded at $106.4350, with a volume of 604,709 shares changing hands.

The food distribution company reported $1.59 EPS for the quarter, missing analysts' consensus estimates of $1.60 by ($0.01). The business had revenue of $18.03 billion for the quarter, compared to analyst estimates of $18.11 billion. Performance Food Group had a return on equity of 15.33% and a net margin of 0.49%.The company's quarterly revenue was up 6.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.84 earnings per share.

Performance Food Group News Roundup

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

• Positive Sentiment: Fiscal fourth-quarter net sales rose approximately 6.4%–6.7% year over year to about $18.0 billion, while net income increased 23.4% to $162.3 million. Total case volume grew 3.5%, including an 8.0% increase in independent foodservice volume. PFGC reports fiscal Q4 net sales of $18.0 billion
• Positive Sentiment: Management expects fiscal 2027 adjusted EBITDA of approximately $2.125 billion to $2.225 billion and revenue of $72.5 billion to $73.0 billion, broadly matching the $72.6 billion analyst consensus. Performance Food Sales, Profit Rise on Higher Prices
• Neutral Sentiment: Higher prices helped lift sales and profit, but costs also increased, leaving investors focused on whether Performance Food Group can sustain margin improvement. Fiscal fourth-quarter gross profit rose 8.3% to $2.2 billion.
• Neutral Sentiment: Brokerages maintain an average “Moderate Buy” rating, providing some support despite the earnings reaction. Performance Food Group Given Average Recommendation of Moderate Buy
• Negative Sentiment: Adjusted quarterly EPS was $1.59, below consensus estimates ranging from $1.60 to $1.62, while revenue of $18.03 billion also missed the $18.11 billion estimate. The earnings miss is the clearest near-term catalyst for the stock’s decline. Performance Food Group Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Fiscal 2027 revenue guidance is roughly in line with expectations, while first-quarter revenue guidance of $17.9 billion to $18.1 billion reaches consensus only at the top end, suggesting limited near-term upside.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Barclays increased their price objective on Performance Food Group from $105.00 to $115.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Guggenheim lifted their price objective on shares of Performance Food Group from $115.00 to $125.00 and gave the company a "buy" rating in a research report on Monday, June 29th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Performance Food Group in a report on Wednesday, June 24th. Morgan Stanley raised their target price on shares of Performance Food Group from $120.00 to $131.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Finally, Wells Fargo & Company boosted their price target on Performance Food Group from $115.00 to $130.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Eleven analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $123.82.

Insider Transactions at Performance Food Group

In other news, insider A Brent King sold 6,111 shares of Performance Food Group stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $105.00, for a total value of $641,655.00. Following the completion of the sale, the insider directly owned 44,260 shares in the company, valued at approximately $4,647,300. The trade was a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Erika T. Davis sold 2,595 shares of Performance Food Group stock in a transaction on Friday, June 26th. The shares were sold at an average price of $110.00, for a total value of $285,450.00. Following the completion of the transaction, the insider directly owned 40,446 shares of the company's stock, valued at $4,449,060. This represents a 6.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 27,187 shares of company stock valued at $2,743,695. 4.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. boosted its position in Performance Food Group by 9.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,400,934 shares of the food distribution company's stock valued at $125,972,000 after buying an additional 121,202 shares in the last quarter. Kennedy Capital Management LLC increased its holdings in shares of Performance Food Group by 7.3% during the fourth quarter. Kennedy Capital Management LLC now owns 207,351 shares of the food distribution company's stock worth $18,645,000 after buying an additional 14,173 shares in the last quarter. Hsbc Holdings PLC lifted its stake in shares of Performance Food Group by 30.9% in the 4th quarter. Hsbc Holdings PLC now owns 48,951 shares of the food distribution company's stock valued at $4,408,000 after acquiring an additional 11,569 shares during the last quarter. Eurizon Capital SGR S.p.A. bought a new position in shares of Performance Food Group in the 4th quarter valued at $81,020,000. Finally, TimesSquare Capital Management LLC boosted its holdings in shares of Performance Food Group by 28.9% during the 4th quarter. TimesSquare Capital Management LLC now owns 853,970 shares of the food distribution company's stock valued at $76,789,000 after acquiring an additional 191,585 shares in the last quarter. Institutional investors and hedge funds own 96.87% of the company's stock.

Performance Food Group Stock Performance

The company has a market cap of $16.70 billion, a price-to-earnings ratio of 50.62, a P/E/G ratio of 1.43 and a beta of 0.91. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.68 and a current ratio of 1.52. The company has a fifty day moving average of $109.16 and a two-hundred day moving average of $97.73.

Performance Food Group Company Profile

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.

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