Food distribution giant Sysco (NYSE: SYY) will be reporting earnings this Tuesday before the bell. Here’s what investors should know.
Sysco beat analysts’ revenue expectations last quarter, reporting revenues of $22.12 billion, up 4.7% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.
Is Sysco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sysco’s revenue to grow 4% year on year, in line with the 3.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sysco has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sysco’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hilton Grand Vacations delivered year-on-year revenue growth of 50.8%, beating analysts’ expectations by 39.5%, and Hasbro reported revenues up 15%, topping estimates by 7.9%. Hilton Grand Vacations traded up 8.2% following the results while Hasbro was also up 15.7%.
Read our full analysis of Hilton Grand Vacations’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.1% on average over the last month. Sysco is up 8.3% during the same time and is heading into earnings with an average analyst price target of $91.75 (compared to the current share price of $82.74).
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