Sysco Earnings Boost Shares

Eddy Elfenbein submits: There was more good news from Sysco (SYY):

Food distributor Sysco Corp. on Monday reported better-than-expected quarterly earnings, helped by increased sales despite food cost inflation, sending shares up as much as 5 percent.

The company, which supplies food and other products to restaurants, cafeterias and other food sellers, reported net earnings of $303.4 million, or 49 cents per share, for the fiscal fourth quarter ended June 30, up from $254.1 million, or 41 cents per share, a year earlier.

Analysts were expecting the company to earn 46 cents per share, according to Reuters Estimates.

Sysco said quarterly sales rose 8.5 percent $9.23 billion, above analysts' expectation of $9.137 billion.

Food cost inflation, measured by the change in Sysco's cost of goods, was 6.1 percent.

The company is targeting long-term annual sales growth of 7 to 9 percent, excluding the impact of major acquisitions, and expects low-to mid-double digit annualized earnings per share growth.

Analysts expected Sysco's 2008 profits to grow about 13 percent to $1.78 per share, and revenues to grow 8 percent to $37.83 billion, according to Reuters Estimates.

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