Sysco (NYSE:SYY) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Quarterly results missed estimates: Sysco reported EPS of $0.94 vs. the $0.95 consensus (a $0.01 miss) while revenue rose 4.7% year-over-year and EPS declined from $0.96 in the prior-year quarter.
• Dividend hike and mixed analyst outlook: The company raised its quarterly dividend to $0.55 (annualized $2.20, ~3.0% yield); analysts are divided but the consensus rating is a "Moderate Buy" with an average target of $87.85, and institutional investors own about 83.4% of the stock.

Sysco (NYSE:SYY - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.94 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.01), Briefing.com reports. Sysco had a return on equity of 109.21% and a net margin of 2.17%.During the same quarter in the prior year, the company earned $0.96 earnings per share. The company's revenue for the quarter was up 4.7% on a year-over-year basis.

Sysco Price Performance

Sysco stock opened at $73.75 on Tuesday. The stock has a market cap of $35.32 billion, a price-to-earnings ratio of 19.83, a PEG ratio of 2.76 and a beta of 0.69. The company has a quick ratio of 0.75, a current ratio of 1.30 and a debt-to-equity ratio of 5.45. The business has a 50-day simple moving average of $80.88 and a 200 day simple moving average of $78.51. Sysco has a 52 week low of $68.00 and a 52 week high of $91.85.

Sysco Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Thursday, July 2nd will be given a dividend of $0.55 per share. The ex-dividend date is Thursday, July 2nd. This is a positive change from Sysco's previous quarterly dividend of $0.54. This represents a $2.20 annualized dividend and a yield of 3.0%. Sysco's dividend payout ratio (DPR) is presently 59.14%.

Insider Activity

In other news, Director Sheila Talton sold 2,801 shares of Sysco stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $82.99, for a total transaction of $232,454.99. Following the completion of the sale, the director owned 12,868 shares in the company, valued at approximately $1,067,915.32. This trade represents a 17.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.56% of the company's stock.

Institutional Investors Weigh In On Sysco

Hedge funds have recently bought and sold shares of the stock. State Street Corp increased its holdings in shares of Sysco by 0.9% in the 3rd quarter. State Street Corp now owns 26,669,576 shares of the company's stock worth $2,195,973,000 after buying an additional 246,542 shares during the last quarter. Morgan Stanley grew its position in Sysco by 9.0% in the fourth quarter. Morgan Stanley now owns 6,058,405 shares of the company's stock worth $446,444,000 after acquiring an additional 500,881 shares in the last quarter. Wellington Management Group LLP increased its stake in Sysco by 3,977.1% in the third quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company's stock valued at $387,935,000 after acquiring an additional 4,595,819 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in Sysco by 2.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,190,972 shares of the company's stock valued at $235,143,000 after purchasing an additional 61,915 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in Sysco by 12.0% during the second quarter. Ameriprise Financial Inc. now owns 2,639,931 shares of the company's stock worth $201,076,000 after purchasing an additional 283,706 shares during the last quarter. 83.41% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

SYY has been the topic of several recent research reports. Wells Fargo & Company increased their target price on Sysco from $92.00 to $100.00 and gave the stock an "overweight" rating in a research report on Thursday, February 19th. Guggenheim decreased their price objective on Sysco from $95.00 to $90.00 and set a "buy" rating on the stock in a research note on Thursday, April 2nd. UBS Group dropped their price objective on Sysco from $95.00 to $90.00 and set a "buy" rating on the stock in a report on Thursday, April 2nd. Weiss Ratings lowered Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, March 30th. Finally, Wall Street Zen upgraded Sysco from a "hold" rating to a "buy" rating in a research report on Saturday, April 11th. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $87.85.

About Sysco

Sysco Corporation NYSE: SYY is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.

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