Sysco Corp. Stock Rises Over 10.7% after Q1 Report
HOUSTON, TX - Sysco has been making some big moves lately, and the public and shareholders seem to agree. With shares last month rising a notable 10.7%, analysts are pinpointing the company’s stock as indicative of its fiscal results as well as what may be to come.
The 10.7% rise, as reported by S&P Global Market Intelligence, came following the company’s posted Q1 financial report where Sysco surpassed Wall Street’s original prediction of $13.9 billion in revenue and $0.58 in EPS. Fox Business reported that Sysco beat out investors’ expectations through the following key points:
- 33% rise to its profits
- 11% jump in sales revenue to $14 billion
- Adjust earnings increased 29% to $0.67 per share
Sysco’s $3.1 billion acquisition of Brakes Group earlier in 2016 is also being credited for the stock jump, as the new business helped boost Sysco’s revenue numbers. Additionally, Sysco’s margin gains helped incite the surge in adjusted earnings, which in part boosted the company’s stock.
Since its stock boosted, Sysco has still been on the rise. As of today, at 12:47 EST, Sysco’s shares are still up 0.43% to $55.86 per share, with a price to earning ratio of 30.78.
Some analysts, Fox Business continued to report, are also speculating that these gains are just a sign of larger movement to come. These analysts stated that market predictors expect the restaurant business to increase with prospective legislation pushing tax cuts and fiscal stimulus that may be on the horizon as administrations prepare to shift. As the push for restaurants increase, thus would Sysco’s services.
Additionally, this shift in administrations to the Republican sector may see the revival of a Sysco and US Foods merger.
Will Sysco continue to beat out expectations? AndNowUKnow will have the latest as the financial reports roll in.