Sysco Corporation (NYSE:SYY) noticed its shares falter Monday morning, after announcing first-quarter 2020 financial figures.
Sales increased 0.6% to $15.3 billion, while gross profit moved higher1.4% to $2.9 billion; gross margin increased 15 basis points
Operating income jumped.4% to $668.3 million; adjusted operating income increased 7.3% to $741.9 million. EPS increased $0.06 to $0.87; adjusted EPS increased $0.08 to $0.98
CEO Tom Bene said,“We saw improved financial results in the first quarter with adjusted operating income growth that was in line with our expectations, as we remain focused on accelerating local case growth and maintaining our strong track record of expense management.
"As we look forward to celebrating our 50th anniversary this fiscal year, we remain committed to meeting the changing needs of our customers and supporting their continued growth."
Cash flow from operations was $171.6 million for the first 13 weeks of fiscal 2020, which was $99.6 million lower compared to the prior year period.
The decrease in free cash flow was driven by a combination of an increase in working capital and higher capital spending during the first quarter. However, the company continues to expect strong cash flow for the full fiscal year 2020.
Capital expenditures, net of proceeds from sales of plant and equipment, totaled $170.8 million for the first 13 weeks of fiscal 2020, which was $70.3 million higher compared to the prior year period.
Shares faded $2.32, or 2.9%, to $78.96
