Sysco Q3 Profit Down - Quick Facts

(RTTNews) - Sysco Corp. (SYY) reported that its third-quarter net earnings declined to $176.96 million from $180.94 million in the year ago quarter. Earnings per share was $0.30, down from $0.31 last year.

Adjusted net earnings were $238 million, an increase of $16 million, or 7.0% compared to the same period last year. Adjusted earnings per share was $0.40, which was 5.3% higher compared to the same period last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted operating expenses increased $73 million, or 4.5% compared to the same period last year, due to a $61 million increase in payroll expense. Payroll expense increased mainly due to: higher pay for our sales organization as a result of higher gross profit, investment in new administrative support capabilities, higher incentive accruals, and acquired operations, partially offset by lower delivery costs.

Sales for the third quarter were $11.7 billion, an increase of 4.2% compared to the same period last year. Wall Street analysts had a consensus revenue estimate of $11.98 billion for the quarter.

A hearing on the Federal Trade Commission's motion for a preliminary injunction is scheduled to begin May 5 in the U.S. District Court for the District of Columbia. The Company said it believes the completion of its pending merger with US Foods will ultimately help it provide better service to its customers at a lower cost by becoming more efficient, innovative and competitive.