Sysco Corp. (NYSE: SYY) reported second-quarter fiscal 2016 results before markets opened Monday. The food distributor posted adjusted diluted earnings per share (EPS) of $0.48 on revenues of $12.2 billion. In the same period a year ago, the company reported EPS of $0.41 on revenues of $12.09 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.41 and $12.14 billion in revenues.
Adjusted EPS includes a one-time $0.03 benefit from resolving certain tax contingencies. Quarterly EPS is up 17.1% year over year. For the first half of the fiscal year, adjusted EPS totaled $1.00, up 7.5% compared with the first half of 2015.
CEO Bill DeLaney said:
We achieved strong local case growth, while managing gross margins well and also containing operating expense growth. Through the first six-months of the year, we are on-track to achieve our financial objectives for the first year of our three-year plan.
The company’s three-year plan aims to reduce costs, target smaller acquisitions and expand sales. Operating income is targeted to rise by $400 million and deliver a 15% return on invested capital by 2018.
Adjusted operating income for the quarter rose 10.2% to $437 million and operating margin totaled 3.59%, up 31 basis points year over year. Adjusted net earnings were up 12.6% to $275 million.
Sysco did not offer guidance in its press release. Consensus estimates call for third-quarter EPS of $0.40 and revenues of $11.95 billion. For the full year, analysts are looking for EPS of $1.93 and revenues of $50.46.
The stock closed at $39.81 on Friday, up about 0.8%, in a 52-week range of $35.45 to $42.03. Shares were inactive in Monday’s premarket trading. The consensus price target on the stock is $39.36.
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