US Foods Q3 revenue misses estimates; trims FY sales view
Overview
US foodservice distributor's Q3 revenue rose 2.1% but missed analyst expectations
Adjusted EPS for Q3 rose 17.8% and beat analyst expectations
Company repurchased $191 mln of shares in Q3
Outlook
US Foods now sees full-yr net sales growth of 4% to 5%, down from 4% to 6%
Company expects full-yr adjusted EBITDA growth of 9% to 11%, down from 9% to 13%
US Foods sees full-yr adjusted diluted EPS growth of 18% to 20%, down from 18% to 24%
Result Drivers
CASE VOLUME GROWTH - Co said higher independent restaurant, healthcare and hospitality case volumes drove overall sales growth
GROSS PROFIT IMPROVEMENT - Co attributed higher gross profit to increased case volume, improved cost of goods sold and favorable LIFO adjustment
TECHNOLOGY INITIATIVES - Co said digital and AI initiatives contributed to topline growth, productivity gains and margin expansion
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $10.40 bln | $10.59 bln (11 Analysts) |
Q3 Adjusted EPS | Beat | $1.26 | $1.24 (10 Analysts) |
Q3 Net Income | $218 mln | ||
Q3 Gross Profit | $1.90 bln | ||
Q3 Operating Income | $371 mln | ||
Q3 Pretax Profit | $293 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "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 US Foods Holding Corp. is $120.00, about 9.2% above its November 4 closing price of $109.93
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago
Reuters Recommended Reads
Nov 3 - Food distributor Sysco says cyclosporiasis outbreak hit Q1 sales
Nov 4 - Performance Food beats Q1 profit estimates on higher prices, cases sold
Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)