2024-01-30 14:03:36 ET
Summary
- Sysco Corporation stock rose 3% after reporting solid results, as the company's business is recovering from the negative impact of COVID and food inflation.
- Adjusted EPS beat expectations and revenue rose by 3.7%.
- Sysco's international sales rose by 9.6%, indicating a recovery in overseas markets and providing margin accretion opportunity.
- With restaurant demand strong and food prices falling, margins should continue to expand, powering shareholder returns.
Shares of Sysco Corporation ( SYY ) rose about 3% on Tuesday after reporting solid fiscal Q2 results. This comes as the company’s stock has been a material underperformer over the past year, losing about 4% even as the broader market has rallied substantially. While its business was negatively impacted by COVID as well as subsequent food inflation, results are on the mend, and I see moderate upside from here, making shares a buy....
Read the full article on Seeking Alpha
For further details see:
Sysco: Fiscal Q2 Results Point To Ongoing Margin Improvement