The U.S. stock market was lower in morning trading Monday, with the tech sector leading the decline.
Shares of US Foods Holding Corp. (USFD, Financial) fell more than 16% Monday morning after the company posted second-quarter earnings. The company recorded earnings per share of 57 cents on revenue of $6.16 billion. The company fell short of earnings estimates by one cent and revenue expectations by $170 million.
Gross profit was $1.1 billion, an increase of $60 million, or 5.7% from the previous year, due to margin expansion initiatives, a year-over-year gain in the LIFO reserve and acquisitions. As a percentage of net sales, the gross profit was 18.1%.
For the year, the company expects total case volume growth to be flat, net sales growth between 1% and 2%, adjusted gross profit dollar growth of approximately 3% and adjusted earnings before interest, taxes, depreciation and amortization growth in the range of 5% to 7%. It also expects adjusted diluted earnings per share between $2 and $2.10.
Gainers
- Goodyear Tire & Rubber Co. (GT, Financial)
- Advanced Micro Devices Inc. (AMD, Financial)”‹
- Kroger Co. (KR, Financial)”‹
- TechnipFMC PLC (FTI, Financial)
Losers
- Tyson Foods Inc. (TSN, Financial)
- Twitter Inc. (TWTR, Financial)
- Electronic Arts Inc. (EA, Financial)
- Adobe Systems Inc. (ADBE, Financial)
Global markets
The main European stock markets were lower. The U.K.'s FTSE 100 fell 0.006%, France's CAC 40 lost 0.37%, Germany's Dax declined 0.48% and Spain's Ibex 35 slipped 0.14%.
In Asia, markets closed in negative territory. While India’s BSE Sensex gained 0.42%, Japan's Nikkei 225 lost 0.74%, Hong Kong's Hang Seng fell 0.25% and China's Shanghai Composite declined 0.16%.
Disclosure: The author holds no positions in any stocks mentioned.
