Sysco Q2: EPS Beats, EBITDA Misses, Shares Drop 4.5% as UBS Cuts Price Target
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Sysco reported mixed second-quarter results, with revenue reaching $20.76 billion and adjusted EPS slightly exceeding analyst expectations. However, the company's EBITDA missed forecasts, and US local case volume growth was modest at 1.2%. Following the announcement, Sysco's shares fell approximately 4.5%, and UBS responded by cutting its price target from $95 to $90. This earnings update provides a look into the company's operational performance, distinct from the recent $29.1 billion acquisition of Jetro Restaurant Depot announced on March 30th. The market reaction suggests that the EBITDA miss and cautious outlook, despite the EPS beat, are weighing on investor sentiment. Traders will be watching for management's ability to meet its targeted ≥2.5% volume growth for the second half of the fiscal year and the financial impact of the large acquisition.
At the time of this announcement, SYY was trading at $71.16 on NYSE in the Trade & Services sector, with a market capitalization of approximately $34.1B. The 52-week trading range was $67.12 to $91.85. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.