Food delivery giant Sysco Corporation (NYSE:SYY) early Monday posted better than expected fiscal Q1 results, as gains from a recent acquisition helped boost revenue and margins.
The Houston-based company reported adjusted fiscal Q1 EPS of $0.67, a full 9 cents better than Wall Street’s consensus estimate of $0.58. Revenue jumped 11.2% from last year to $13.97 billion, narrowly beating analysts’ view of $13.89 billion.
Sysco noted that when excluding contributions from recently-acquired U.K-based food distributor Brakes, sales would have grown just 1.0% to $12.7 billion.
Gross profit rose 20.3% in the latest quarter to to $2.7 billion, while gross margin gained 146 basis points to 19.27%. Excluding Brakes, gross profit increased 5.0% to $2.3 billion, and gross margin rose 70 basis points to 18.52%.
The company commented via press release:
“I am pleased with our first quarter performance which built upon the favorable results we have achieved over the past several quarters,” said Bill DeLaney, Sysco’s chief executive officer. “We continued to focus on supporting the needs of our customers and achieved strong earnings growth through solid execution in a softening industry environment. We remain committed to achieving our three-year plan financial goals.”
Sysco shares jumped $1.50 (+3.12%) to $49.55 in premarket trading Monday. Prior to today’s report, SYY had gained 17.17% year-to-date, versus just a 2.29% gain in the benchmark S&P 500 index during the same period.