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Omar Venerio
Omar Venerio
Articles (1573) 

Wall Street Indexes Fall More Than 1%

Sysco advances on 4th-quarter earnings

U.S. stocks were in the red on Monday as protests in Hong Kong and Macri's adverse voting in Argentina's PASO made for a weak session. The Dow Jones Industrial Average fell 1.49% to 25,896.44, the S&P 500 index lost 1.23% to 2,882.70 and the Nasdaq Composite Index declined 1.20% to 7,863.41.

Shares of Sysco Corp. (NYSE:SYY) gained more than 3% after announcing fourth-quarter results. The company posted earnings per share of $1.10 per share and revenue of $15.47 billion, reflecting 1% growth from the prior-year quarter. The company beat earnings estimates by 3 cents, but fell $180 million short of revenue expectations.

“Sysco saw improved year-over-year performance in the fourth quarter and fiscal year 2019,” Chairman, President and CEO Tom Bené said. “We continue to focus on our customers and are furthering the progress of our transformative initiatives, which we believe will increase the ease of doing business with Sysco, position us well for the long-term and create value for our shareholders in fiscal year 2020 and beyond.”

During the quarter, the gross profit grew 2.9% to $2.1 billion and the gross margin increased 3 basis points to 20.1%. Operating expenses climbed by $57.4 million, or 4.7%, when compared to the year-ago quarter; and the adjusted operating expenses increased by $60.1 million, or 4.9%.

Further, operating income was $874.2 million, an increase of $3.7 million, or 0.4%, and the adjusted operating income was $871.4 million, an increase of $0.9 million, or 0.1%, compared to fourth-quarter 2018.

Moreover, the cash flow from operations was $2.4 billion. Free cash flow was $1.7 billion.

During the quarter ended June 30, Jerome Dodson (Trades, Portfolio) boosted his holding by 14.5% to 320,666 shares and Yacktman Asset Management (Trades, Portfolio) reduced its position by 1.5% to 4,094,660 shares.



Global markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 dipped 0.37%, France's CAC 40 slid 0.33%, Germany's Dax retreated 0.12% and Spain's IBEX 35 sunk 0.93%.

In Asia, Japan's Nikkei 225 rose 0.44%, India’s BSE Sensex gained 0.68%, Hong Kong's Hang Seng fell 0.44% and China's Shanghai Composite climbed 1.45%.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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