US Foods beats by $0.04, reports revs in-line; guides FY17 EPS in-line, revs below consensus (27.19)
- Reports Q4 (Dec) adj. earnings of $0.53 per share, $0.04 better than the Capital IQ Consensus of $0.49; revenues fell 4.3% year/year to $5.68 bln vs the $5.68 bln Capital IQ Consensus. Excluding the extra week, Net sales increased 1.7% driven by case volume growth offset by deflation in dairy and beef. Excluding the extra week, sales from acquisitions completed in the last 12 months boosted Net sales by ~ 1.7%.
- Total case volume decreased 1.9% and Independent Restaurant case volume decreased 1.0% from prior year, impacted by an extra week of operations in 2015. Excluding the extra week, total case volume increased 4.1%, of which 2.0% was organic growth, and Independent Restaurant case volume increased 6.1%, of which 3.8% was organic growth. Strong growth with Independent Restaurants and the addition of new healthcare and hospitality business contributed to the fourth quarter volume growth.
- Adjusted Gross profit was 18.2% compared to prior year of 17.6%. The increase in Adjusted Gross profit as a percentage of Net sales primarily resulted from favorable customer mix and margin improvement initiatives, including strategic vendor management.
- Co issues guidance for FY17, sees EPS of $1.26-1.40, excluding non-recurring items, vs. $1.38 Capital IQ Consensus Estimate; sees FY17 revs +1-3% to ~$23.15-23.61 bln vs. $23.62 bln Capital IQ Consensus Estimate; total case volume +2-4%; EBITDA +7-10%.