US Foods Holding Corp (USFD) announced its third-quarter earnings on Thursday, surpassing expectations and revising their full-year outlook to a higher projection. Although the foodservice distributor’s stock remained inactive in premarket trading, the positive results are likely to be well-received by investors.
In terms of financials, net income for the third quarter was recorded at $95 million, or 38 cents per share, compared to $100 million, or 43 cents per share, in the same period last year. However, when excluding nonrecurring items, adjusted earnings per share rose to 70 cents, exceeding the FactSet consensus of 69 cents.
The company also saw sales growth of 2.1% to reach $9.106 billion. Despite a 1.3% deflation in food costs, this increase was driven by a 4.0% rise in case volume. While this slightly missed the FactSet consensus of $9.116 billion, the overall performance is promising.
Moreover, US Foods Holding Corp has raised its adjusted EPS guidance range for 2023. The previous range of $2.55 to $2.65 has been revised upwards to $2.60 to $2.70, indicating increased confidence in the future prospects of the company. This revision demonstrates a positive outlook for the industry and suggests that US Foods Holding Corp is well-positioned for continued growth.
Despite a slight decline of 2.9% in the past three months, it is important to note that the overall market, as represented by the S&P 500 index, experienced an even greater decline of 1.9%. These numbers highlight that US Foods Holding Corp has fared relatively well despite broader market challenges.
In conclusion, US Foods Holding Corp has reported impressive third-quarter profits, surpassing analyst expectations. With an upward revision to its full-year outlook, the foodservice distributor is poised for a prosperous future. Investors and industry observers will be watching closely as the company continues on its growth trajectory.
