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Sysco Falls 4% As Q2 Profit Slips Due To Omicron, Higher Labor Costs

Shares of Sysco Corp. (SYY) slipped nearly 4% on Tuesday morning after the food products distributor's second-quarter profit fell short of Wall Street expectations, hurt largely by Omicron and labor cost increases during the quarter.

SYY is currently trading at $77.07, down $2.85 or 3.56%, on the NYSE.

"Bottom-line results for the quarter were below our expectations due to higher than anticipated operating expenses, driven by the current COVID environment. The Omicron variant is currently impacting our customers, affecting their top-line and hours of operations. At Sysco, the COVID impact is felt in our operations productivity performance with higher than normal cost to serve," said CEO Kevin Hourican.

Sales for the second quarter increased 41.2% to $16.32 billion from $11.56 billion last year.

Net income for the quarter was $167.4 million or $0.33 per share, up from $67.3 million or $0.13 per share last year. On an adjusted basis, earnings increased to $0.57 per share from $0.17 per share last year.

Analyst polled by Thomson Reuters estimated earnings of $0.71 per share on revenues of $16.05 billion for the quarter.

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