NYSE$SYY

Sysco Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported third quarter fiscal 2021 results, with US recovery accelerating and significant debt reduction underway.

Sysco's Q3 2021 results showed improving sales trends as markets reopen, with a 13.7% decrease versus FY20. The company is now serving more independent customers than in 2019 and reduced debt by $1.1 billion. A robust business recovery is now upon us.

  • Sales trends improving as markets reopen; Q3 decreased 13.7% versus FY20 and decreased 19.3% versus FY2019; April increased 102.1% versus 2020 and decreased 8.8% versus 2019.
  • We are now serving more independent customers compared to pre-COVID.
  • Gross profit decreased 17.2% to $2.1 billion; industry-leading gross margin decreased 77 basis points on mix among businesses.
  • Company reduced debt by $1.1 billion during the quarter.

Headline financials

Total Revenue

$11.8B

Previous: $13.7B-13.7%
EPS (adj)

$0.22

Previous: $0.45-51.1%
Free Cash Flow

$88.9M

Previous: -$54.3M+263.9%
Net Income

$88.9M

Previous: -$54.3M+263.9%
Operating Income

$236M

Previous: $60.3M+291.4%
Gross Profit

$2.12B

Previous: $2.56B-17.2%
Cash & Equivalents

$4.9B

Previous: $2.24B+118.5%
Total Assets

$22B

Previous: $20.4B+7.9%
Stock-Based Comp

$18.5M

Previous: $17.3M+7.1%

Revenue & EPS history

Sysco · Revenue · Quarterly

$11.8B

Q3 2021-13.7%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Sysco · $11.8B total across 4 segments · Q3 2021

  • U.S. Foodservice
    $8.4B-12.5%
  • International Foodservice
    $1.7B-32.0%
  • SYGMA
    $1.58B+15.9%
  • Other
    $161M-32.8%

Forward guidance

Sysco's forward-looking statements involve risks and uncertainties, including the impact of COVID-19, economic conditions, competition, and supply chain disruptions.

Tailwinds

  • Expectations regarding our ability to manage the current downturn and capitalize on our position as the industry leader as the global economy recovers.
  • Belief that our strategy and our transformational initiatives will drive future value for our associates, shareholders and customers in the fourth quarter and beyond.
  • Expectations regarding our ability to attract and serve new customers, following the COVID-19 crisis.
  • Belief that consumers are ready to eat at restaurants as soon as COVID-19 restrictions are reduced.
  • Expectations that our work to accelerate growth will return to pre-COVID levels as demand resurges.

Headwinds

  • The effect, impact, potential duration or other implications of the coronavirus (“COVID-19”) pandemic and any expectations we may have with respect thereto, including the extent and duration of lockdowns in the U.S. and Europe
  • The pace of the business recovery
  • Our expectations regarding future market share gains
  • The pace of implementation of our business transformation initiatives
  • Our expectations regarding our ability to win meaningful business in the national account space

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 2021

Historical avgQ3 2021

+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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