Yahoo Finance Sysco Corporation (SYY) Readies for Q2 Earnings: Things to Note
Sysco Corporation SYY is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 earnings on Jan 31. The Zacks Consensus Estimate for revenues is pegged at $18,733 million, suggesting a jump of 14.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the second-quarter bottom line has gone down by a penny in the past 30 days to 83 cents per share. The projection indicates growth of 45.6% from the year-ago quarter’s reported figure.
Sysco has a trailing four-quarter earnings surprise of 3.7%, on average. However, this food company reported a negative earnings surprise of about 2% in the last reported quarter.
Sysco Corporation Price, Consensus and EPS Surprise
Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote
Factors to Consider
SYY has been benefiting from its Recipe for Growth, which is strengthening the company’s capacities across sales and the supply chain. The program involves five strategic priorities, which include enhancing customers’ experience via digital tools, improving the supply chain to cater to customers efficiently, providing customer-oriented merchandising and marketing solutions, having team-based selling and cultivating new capacities, channels and segments, alongside sponsoring investments via cost-saving initiatives.
Sysco’s diversified channels have also been a driver. The company’s operations are diversified across different customer types, product categories and geographies.
Sysco caters to restaurants of all price-point spectrums and types. It also caters to health care and education facilities alongside travel and recreation facilities in office buildings. Travel and recreation facilities have been seeing a continued revival. These upsides are likely to be reflected in the quarter to be reported.
The company has been encountering product cost inflation in the U.S. Foodservice unit for a while now. For fiscal 2023, management earlier projected inflation in the mid-single digits across all categories. Sysco also expects increased operating costs in the fiscal due to transformation investments and a tough hiring landscape. These may have acted as a hindrance in the second quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Sysco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Sysco has a Zacks Rank #4 (Sell) and an Earnings ESP of -6.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Benson Hill, Inc. BHIL has an Earnings ESP of +9.09% and a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2022 earnings is pegged at a loss of 17 cents compared with a loss of 32 cents reported in the year-ago period. BHIL has a trailing four-quarter earnings surprise of about 18%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Benson Hill’s top line is pegged at $100.9 million, calling for growth of 130.7% from the prior-year quarter’s reported figure.
Freshpet, Inc. FRPT is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period reported figure.
FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.
Kellogg Company K currently has an Earnings ESP of +1.87% and a Zacks Rank of 3. K is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 83 cents is in line with the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
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Freshpet, Inc. (FRPT) : Free Stock Analysis Report
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Benson Hill, Inc. (BHIL) : Free Stock Analysis Report
