Sysco Misses by a Penny

After opening lower today, the stock market is rallying off its lows. Before the opening bell Sysco (SYY) released earnings for its fiscal fourth quarter. The company earned 57 cents a share which was a penny below forecasts but four cents more than a year ago.
Sysco is a consumer staple so it’s usually good stock to own during a recession. Still, times are tough and the company’s CEO said, “We have seen no consistent pattern of improvement on a week to week basis.”
Looking at the numbers, Sysco is still doing well. Not great, but well enough. For the quarter, revenue rose 14% to $10.35 billion, up from $9.09 billion last year. For the full year, Sysco earned $1.99 per share which is up from $1.77 per share.
Sysco is your classic slow-and-steady stock so I’m not too concerned about it missing earnings by a penny. The company should probably make another $2 a share this year so the current price is a pretty good value. The shares are down about 3% today.

Posted by on August 16th, 2010 at 1:33 pm


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