NYSE$SYY

Sysco Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Sysco reported record third quarter operating income with sales increasing and market share gains.

Sysco's Q3 2023 results showed strong financial performance with sales increasing by 11.7% to $18.9 billion, gross profit rising by 13.9% to $3.4 billion, and operating income increasing by 40.0% to $694.2 million. The company delivered record Q3 adjusted operating income, driven by volume growth and effective management of product cost inflation.

  • Sales increased by 11.7% compared to the same period in fiscal year 2022.
  • Gross profit increased 13.9% to $3.4 billion, as compared to the same period last year.
  • Operating income increased 40.0% to $694.2 million, as compared to the same period last year.
  • EPS increased 42.4% to $0.84 and adjusted EPS increased 26.8% to $0.90, as compared to the same period last year.

Headline financials

Total Revenue

$18.9B

Previous: $16.9B+11.7%
EPS (adj)

$0.90

Previous: $0.71+26.8%
Sysco Brand Sales - Broadline

36.6%

No prior period
Sysco Brand Sales - Local

46.0%

No prior period
Free Cash Flow

$430M

Previous: $303M+41.6%
Net Income

$430M

Previous: $303M+41.6%
Operating Income

$694M

Previous: $496M+40.0%
Gross Profit

$3.43B

Previous: $3.01B+13.9%
Cash & Equivalents

$758M

Previous: $876M-13.5%
Total Assets

$22.7B

Previous: $22.3B+1.7%
Stock-Based Comp

$21.1M

Previous: $30.4M-30.7%

Revenue & EPS history

Sysco · Revenue · Quarterly

$18.9B

Q3 2023+11.7%vs Q3 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Sysco · $18.9B total across 4 segments · Q3 2023

  • U.S. Foodservice
    $13.3B+10.5%
  • International Foodservice
    $3.34B+19.4%
  • SYGMA
    $1.97B+9.9%
  • Other
    $302M+13.1%

Forward guidance

Statements made in this press release or in our earnings call for the third quarter of fiscal year 2023 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995.

Tailwinds

  • Our expectations regarding future improvements in productivity
  • Our belief that improvements in our organizational capabilities will deliver compelling outcomes in future periods
  • Our expectations regarding improvements in international volume
  • Our expectations that our transformational agenda will drive long-term growth
  • Our expectations regarding the continuation of an inflationary environment

Headwinds

  • the effect, impact, potential duration or other implications of the COVID-19 pandemic and any expectations we may have with respect thereto
  • a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations.
  • economic trends in the United States and abroad
  • economic trends in the United States and abroad
  • our plans to improve colleague retention, training and productivity

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 2023

Historical avgQ3 2023

+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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