Sysco chairman steps down following Q3 earnings report
Sysco Corp (NYSE: SYY) is in the red at writing after coming in shy of Street estimates for revenue in its fiscal third quarter.
Sysco names Kevin Hourican its new chairman
The food products company also said Edward Shirley – its chairman of the board is stepping down for health reasons.
Kevin Hourican – its current chief executive will assume his role effective immediately.
Sysco is a more resilient company today due to his [Shirley’s] high standard of excellence.
Edward Shirley joined as a member of the board in September 2016 and was named the chairman of the board at Sysco Corp right before the pandemic in January 2020. $SYY is down close to 10% versus its year-to-date high at writing.
Notable figures in Sysco Q3 earnings release
- Earned $425 million versus the year-ago $430 million
- Per-share earnings inched up from 84 cents to 85 cents
- Adjusted EPS printed at 96 cents as per the earnings report
- Sales popped about 2.5% year-on-year to $19.38 billion
- Consensus was 95 cents a share on $19.74 billion in sales
Higher volumes in the U.S. foodservice segment delivered a 44 basis points increase in gross margin to 18.6% in Q3. CEO Kevin Hourican said in a press release today:
We converted negative traffic at restaurants into sales and case growth by taking market share, profitably. We’re focused on improving local case volume performance.
$SYY now forecasts up to a 10% annualised growth in adjusted per-share earnings in its fiscal 2024.
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