NYSE$SYY

Sysco Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Sysco's financial performance declined in Q3 2020 due to the impact of the COVID-19 pandemic, with sales, gross profit, and operating income all decreasing.

Sysco's Q3 2020 results were significantly impacted by the COVID-19 pandemic. Sales decreased by 6.5% to $13.7 billion, gross profit decreased by 6.9% to $2.6 billion, and operating income saw a substantial decrease of 88.6% to $60.3 million. EPS also decreased to $(0.01). The company has taken measures to reduce costs and create new revenue streams to mitigate the impact of the crisis.

  • Sales decreased by 6.5% to $13.7 billion due to the COVID-19 pandemic.
  • Gross profit decreased by 6.9% to $2.6 billion, with a slight decrease in gross margin.
  • Operating income decreased significantly by 88.6% to $60.3 million.
  • EPS decreased to $(0.01) from $0.86 in the same period last year.

Headline financials

Total Revenue

$13.7B

Previous: $14.7B-6.5%
EPS (adj)

$0.45

Previous: $0.79-43.0%
Free Cash Flow

-$54.3M

Previous: $422M-112.9%
Net Income

-$54.3M

Previous: $422M-112.9%
Operating Income

$60.3M

Previous: $530M-88.6%
Gross Profit

$2.56B

Previous: $2.75B-6.9%
Cash & Equivalents

$2.24B

Previous: $522M+329.6%
Total Assets

$20.4B

Previous: $18.2B+12.3%
Stock-Based Comp

$17.3M

Previous: $23.9M-27.7%

Revenue & EPS history

Sysco · Revenue · Quarterly

$13.7B

Q3 2020-6.5%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Sysco · $13.7B total across 4 segments · Q3 2020

  • U.S. Foodservice
    $9.6B-5.0%
  • International Foodservice
    $2.5B-9.4%
  • SYGMA
    $1.36B-11.3%
  • Other
    $239M-7.2%

Forward guidance

Sysco is focused on stabilizing the business through cost reductions, creating new sources of revenue, and preparing for demand recovery. The company has removed more than $500 million of expenses and reduced staffing levels by approximately 33%.

Tailwinds

  • Strong balance sheet provides stability to navigate the current environment.
  • Swift and decisive action taken to adjust to the new operating environment.
  • Cost reduction realizations to take effect beginning in the fourth quarter.
  • Sequential weekly improvement in trends during April.
  • Expect additional improvement throughout May as certain states allow restaurants to re-open.

Headwinds

  • Sales decreased 6.5% to $13.7 billion.
  • Gross profit decreased 6.9% to $2.6 billion.
  • Operating income decreased 88.6% to $60.3 million.
  • EPS decreased $0.86 to $(0.01).
  • Dramatic decline in volume, sales, and gross profit across all business segments at the end of the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.0%

Avg return

30 days after

42%

30 / 71 earnings

Positive

+12.8%

Q1 2017

Best reaction

-9.6%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-1.6%-1.7%-1.7%
Q2 2026+10.4%+10.9%+17.8%
Q1 2026-2.7%-4.8%-2.7%
Q3 2025-0.3%+0.5%+2.3%
Q2 2025-6.0%-5.1%-2.8%
Q1 2025-1.1%-0.1%+2.1%
Q4 2024+4.6%+4.7%+5.8%
Q3 2024-5.4%-2.4%-7.2%
Q2 2024+7.7%+8.4%+7.7%
Q1 2024+0.2%+2.3%+10.1%
Q4 2023-0.9%-3.3%-8.7%
Q3 2023-2.0%-0.1%-7.2%
Q2 2023-0.2%-1.8%-3.3%
Q1 2023-5.9%-5.0%-0.6%
Q4 2022-5.8%-2.3%-4.3%
Q3 2022+3.7%+4.5%+1.7%
Q2 2022+1.8%+3.3%+0.1%
Q1 2022-2.3%-5.2%-8.1%
Q4 2021+6.4%+8.2%+6.2%
Q3 2021-1.2%+2.6%-4.5%
Q2 2021+6.7%+7.7%+11.0%
Q1 2021+6.4%+6.6%+30.8%
Q4 2020-0.7%-0.9%+2.8%
Q3 2020-3.6%-1.0%+8.8%
Q2 2020-8.6%-5.8%-14.0%
Q1 2020-1.5%-1.1%+0.9%
Q4 2019+4.8%+4.2%+10.1%
Q3 2019+3.4%+4.9%+0.5%
Q2 2019+2.8%+4.1%+4.3%
Q1 2019-9.6%-6.3%-7.2%
Q4 2018+8.3%+9.3%+8.8%
Q3 2018+0.7%+0.9%+5.6%
Q2 2018-2.5%-4.7%-1.7%
Q1 2018-7.2%-4.4%+5.0%
Q4 2017+0.0%-0.8%+3.7%
Q3 2017-0.7%-2.5%-1.0%
Q2 2017-0.6%+0.2%-0.4%
Q1 2017+12.8%+10.6%+13.5%
Q4 2016-0.2%+0.5%-5.0%
Q3 2016+5.3%
Q2 2016+7.5%
Q1 2016-0.7%
Q4 2015+2.8%
Q3 2015-2.8%
Q2 2015+0.9%
Q1 2015-3.1%
Q4 2014+3.0%
Q3 2014+1.0%
Q2 2014-1.4%
Q1 2014+2.3%
Q4 2013-5.4%
Q3 2013-0.8%
Q2 2013-2.2%
Q1 2013-2.3%
Q4 2012+5.6%
Q3 2012+0.4%
Q2 2012-5.0%
Q4 2010-1.3%
Q4 2011-1.3%
Q1 2012+1.1%
Q3 2011-1.3%
Q2 2011+0.1%
Q1 2011-0.9%
Q4 2008+3.1%
Q3 2009+0.0%
Q3 2010+0.0%
Q2 2010-2.0%
Q2 2009-2.0%
Q4 2009-0.0%
Q1 2010-0.0%
Q1 2009-0.0%

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