Food distribution giant US Foods (NYSE: USFD) will be reporting results this Thursday morning. Here’s what you need to know.
US Foods missed analysts’ revenue expectations last quarter, reporting revenues of $9.8 billion, up 3.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.
Is US Foods 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 US Foods’s revenue to grow 3.3% year on year, slowing from the 4.5% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. US Foods has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at US Foods’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sysco delivered year-on-year revenue growth of 4.7%, meeting analysts’ expectations, and Rush Street Interactive reported revenues up 41.1%, topping estimates by 11.3%. Sysco traded down 1.8% following the results while Rush Street Interactive was up 16.6%.
Read our full analysis of Sysco’s results here and Rush Street Interactive’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 6% on average over the last month. US Foods is up 1% during the same time and is heading into earnings with an average analyst price target of $109.33 (compared to the current share price of $91.84).
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