Sysco reports solid case growth

|About: Sysco Corporation (SYY)|By:, SA News Editor

Sysco (NYSE:SYY) is slightly higher after topping FQ2 estimates.

Operating income rose 8.1% to $532M off a 7.1% increase in sales to $14.4B.

Gross margin came in at 18.7% of sales vs. 18.9% consensus.

Case growth was up 3.5% for U.S. broadline and 4.8% for the local business.

CEO update: "We are pleased with the continued momentum in our business driven by strong local case growth and overall top-line results, while balancing some gross profit dollar and expense challenges associated with the second quarter. We remain confident in our ability to deliver on our full-year fiscal 2018 financial targets."

Sysco expects a blended U.S. tax rate of 28% in FY18 and a 21% rate in FY19.

Previously: Sysco beats by $0.01, beats on revenue (Feb. 5)

SYY +0.52% premarket to $61.50.

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