WBT - Today's Research Reports on Stocks to Watch: Sysco Corporation and Welbilt
NEW YORK, NY / ACCESSWIRE / November 6, 2018 / Food service companies Sysco Corporation and Welbilt were both sinking into the red on Monday after reporting worse than expected financial results.
RDI Initiates Coverage on:
Sysco Corporation
https://rdinvesting.com/news/?ticker=SYY
Welbilt, Inc.
https://rdinvesting.com/news/?ticker=WBT
Sysco Corporation shares closed down 9.44% on about 9.3 million shares traded yesterday. The world’s largest food-service distributor reported dismal first quarter financial results that lagged behind expectations. For the quarter, analysts had been expecting 92 cents a share on just under $15.4 billion in sales. Sysco instead reported sales of just over $15.2 billion and earnings of 91 cents a share. CEO Thomas L. Bené said on the earnings call, "Due to some temporary headwinds, including decreased inflation across some categories and the impact of Hurricane Florence that hit the Southeast late in the quarter as well as some additional and more persistent operating expense pressures, we had mixed business results across the business. From a top line perspective, we generated sales of $15.2 billion, a 3.9% increase compared to the same period last year, driven by very strong U.S. Broadline case growth of 5.7% but offset by slower growth in our International businesses. Additionally, we saw our gross profit increase by 3.9%, adjusted operating expense growth of 3.6%, adjusted operating income increased 5.1% and adjusted EPS increased $0.17 to $0.91. Overall, our fundamentals for the quarter were solid. And as an organization, we remain focused on working closely with our suppliers and customers to deliver disciplined profitable growth to enable the achievement of our long-term objectives."
Access RDI’s Sysco Corporation Research Report at:
https://rdinvesting.com/news/?ticker=SYY
Welbilt, Inc. shares were down 26.19% on Monday with roughly 9.7 million shares traded. Average trading volume for the stock is only around 1 million shares. The company, which designs, manufactures, and services hot and cold category commercial foodservice equipment worldwide, saw its shares sink to a new low of $13.89 after reporting third quarter financial results that didn't meet expectations. For the quarter, the company reported a 19 cent per share profit, or 25 cents adjusted on sales of $412.9 million. Analysts had been waiting for 27 cents a share and sales of $421.3 million. Interim President and Chief Executive Officer Josef Matosevic said on the earnings call optimistically, "This was the 13th consecutive quarter of year-over-year adjusted operating EBITDA improvement as we continued our relentless pursuit of operational improvements in our business. Despite headwinds to our margin, we are continuing to deliver more dollars of profit both in total and from organic operations. We continue to expect the total EBITDA dollar from organic operations will increase for the full year.
Access RDI’s Welbilt, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=WBT
Our Actionable Research on Sysco Corporation (NYSE: SYY) and Welbilt, Inc. (NYSE: WBT) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com