Sysco 4Q Profit Up 19%, Beats Street

Sysco Corp., the largest food distributor in the U.S., posted a 19% rise in 4Q net income to $303.4 million, or $0.49/share, beating analysts' average estimate of $0.46. Sales increased 8.5% to $9.23B, topping expectations of $9.15B. Sysco was helped by its raising of prices by 6.1%, which offset higher costs for dairy, beef and other commodities. However, 4Q gross profit margins fell 34 basis points to 19.51%, hurt primarily by "high inflation," according to Sysco. In a press release, Sysco said it expects long term annual nominal sales growth of 7% - 9%, excluding the impact of major acquisitions. CEO Richard J. Schnieder said the company "expects to convert this sales growth into low- to mid-double digit annualized EPS growth." Shares of Sysco were last up 3.4% to $33.50 in thin pre-market trading. Sysco gained 3.5% to close at $32.40 on Friday.

Sources: Press release, Bloomberg, MarketWatch
Commentary: 100 Stocks to Offset Rising Food Prices • Eye on Sysco: Good Business, Bad Economy • Sysco 3Q Net Up 15%, But Misses Estimates by a Penny
Stocks/ETFs to watch: SYY. ETFs: PBJ, PSL

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