Sysco Corporation Poised for Strong Earnings Ahead of Q1 Release

Sysco Corporation (SYY), based in Houston, Texas, is a top player in foodservice distribution with a market cap of $37.63 billion. The company supplies a variety of food products, kitchen equipment, and services to restaurants, healthcare facilities, and hospitality providers around the globe. SYY is scheduled to announce its Q1 earnings on Tuesday, Oct. 29, before the market opens.

As the earnings date approaches, analysts predict that Sysco will report a profit of $1.14 per share, reflecting a 6.5% increase from $1.07 in the same quarter last year. Notably, Sysco has exceeded Wall Street’s EPS expectations in each of the last four quarters.

In its latest quarter, the company reported adjusted earnings of $1.39 per share, which slightly beat market predictions. The robust performance in both the U.S. and international markets contributed to Sysco’s strong sales growth in Q4.

Looking ahead to fiscal 2024, analysts forecast that Sysco’s EPS will rise to $4.60, marking a 6.7% increase from $4.31 in fiscal 2023.

Year-to-date, SYY stock has seen an increase of 3.3%, lagging behind the broader S&P 500 Index ($SPX), which has gained 21.9%, and the Consumer Staples Select Sector SPDR Fund (XLP) with a 14.5% rise during the same period.

On Jul. 30, SYY shares experienced a rise of over 4% following the announcement of its Q4 earnings results. The company’s revenue reached $20.6 billion, surpassing Wall Street’s forecast of $20.5 billion.

The overall sentiment regarding SYY stock is optimistic, categorized as a “Strong Buy” by analysts. Out of 15 analysts monitoring the stock, 11 recommend a “Strong Buy,” while four suggest a “Hold.”

The average price target for SYY is set at $85.58, indicating a potential upside of 13.3% based on current share prices.

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On the date of publication, Rashmi Kumari did not have any positions in the securities mentioned in this article. All data and information in this article are for informational purposes only. Please refer to the Barchart Disclosure Policy for more details.

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