Performance Food beats Q1 profit estimates on higher prices, cases sold
Overview
U.S. food distributor's fiscal Q1 net sales rose 5.5%, meets analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations, rising 11.9% yr/yr
Company cites higher case volume, inflation-driven pricing, and acquisitions for profit growth
Outlook
Performance Food reiterates full-year fiscal 2027 net sales guidance of $72.5 bln to $73.0 bln
Company maintains full-year fiscal 2027 Adjusted EBITDA outlook of $2.125 bln to $2.225 bln
Performance Food expects Q2 net sales of $17.0 bln to $17.2 bln and Adjusted EBITDA of $490 mln to $510 mln
Result Drivers
CASE VOLUME GROWTH - Co attributed higher net sales and profit to increased total and independent Foodservice case volumes
INFLATION-DRIVEN PRICING - Co said net sales benefited from higher selling prices per case due to inflation
ACQUISITIONS - Co said recent acquisitions contributed to net sales and gross profit growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Meet | $18.02 bln | $18.02 bln (10 Analysts) |
Q1 Adjusted EPS | Beat | $1.32 | $1.28 (10 Analysts) |
Q1 EPS | $0.82 | ||
Q1 Net Income | $129.50 mln | ||
Q1 Adjusted EBITDA | Beat | $528 mln | $522.11 mln (10 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy"
Wall Street's median 12-month price target for Performance Food Group Company is $130.00, about 34.7% above its November 3 closing price of $96.51
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)