Sysco Drops on Earnings

Shares of Buy List member Sysco (SYY) are down this morning after the company reported fiscal fourth-quarter earnings of 53 cents a share. That was four cents better than Wall Street’s consensus although it was down from 55 cents a year ago.
The company is the nation’s largest foodservice distributor. Revenues are down about 7% but Sysco has been aggressively cutting costs—operating expenses declined to $1.22 billion from $1.34 billion, which helps during a recession.
For the full year, Sysco earned $1.77 per share which was down from $1.81 per share last year. The company should earn about the same this year which makes the stock reasonably priced. The dividend yields close to 4% which is also nice.

Posted by on August 10th, 2009 at 10:46 am


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