Sysco to Report Q3 Earnings: What Should Investors Expect?

Sysco Corporation SYY is likely to register top and bottom-line growth when it reports third-quarter fiscal 2025 earnings on April 29. The Zacks Consensus Estimate for net sales is pegged at almost $20 billion, suggesting an increase of 3% from the prior-year quarter’s actual. 

The consensus mark for fiscal third-quarter earnings has moved down by 1 cent in the past 30 days to $1.03 per share, indicating growth of 7.3% from the year-ago quarter’s reported figure. SYY has a negative trailing four-quarter earnings surprise of 0.4%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Key Factors to Note Before SYY’s Q3 Earnings Release

Sysco has been gaining from continued strength in its U.S. Foodservice operations, which are fueling its top-line growth. The company is benefiting from robust customer retention and business wins in its national sales, which grew 4.3% in volume in the fiscal second quarter and are likely to have maintained momentum.

The international segment is likely to have contributed to the upside, supported by increased sales headcount, local assortment expansion and strategic sourcing synergies. Moreover, Sysco’s expanded distribution capacity and targeted sales initiatives, such as the ongoing rollout of the Greco Italian platform, have been growth drivers.

On the earnings front, SYY is positioned for bottom-line improvement due to a combination of internal cost-saving measures and operational efficiency gains. Sysco has accelerated its sourcing initiatives, which are expected to deliver $100 million in annualized cost savings starting in the second half of 2025. This is likely to have benefited the company’s performance in the to-be-reported quarter.

In Sysco’s last reported quarter’s earnings call, management highlighted that it expects stable inflation, disciplined pricing and margin management strategies to support growth. The company expects high-single-digit adjusted earnings per share growth in the fiscal third quarter, driven by the combination of revenue expansion and structural cost efficiencies.

Earnings Whispers for SYY Stock

Our proven model does not conclusively predict an earnings beat for Sysco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Sysco carries a Zacks Rank #3 and has an Earnings ESP of -1.85%.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Celsius Holdings, Inc. CELH currently has an Earnings ESP of +3.77% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2025 earnings per share (EPS) is pegged at 20 cents, which implies a 25.9% year-over-year decrease. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $345.3 million, which indicates a decline of 2.9% from the figure reported in the prior-year quarter. CELH has a trailing negative four-quarter earnings surprise of roughly 4%, on average.

Church & Dwight CHD presently has an Earnings ESP of +0.66% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2025 EPS is pegged at 89 cents, which implies a 7.3% year-over-year decrease.

The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.51 billion, which indicates growth of 0.5% from the figure reported in the prior-year quarter. CHD has a trailing four-quarter earnings surprise of 9.6%, on average.

Freshpet FRPT currently has an Earnings ESP of +2.56% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for Freshpet’s quarterly revenues is pegged at $262.3 million, which indicates 17.2% growth from the prior-year quarter’s actual.

The company is expected to register a decrease in the bottom line. The consensus estimate for Freshpet’s first-quarter earnings is pegged at 13 cents per share, indicating a 38.1% decrease from the year-ago quarter. FRPT delivered a trailing four-quarter earnings surprise of 78.8%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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