Performance Food Q2 sales rise 5.2%, slightly miss estimates

Overview

• Food distribution company's Q2 net sales grew 5.2% but slightly missed analyst expectations

• Adjusted EPS for Q2 remained flat at $0.98, missing analyst expectations

• Company highlighted strong case volume growth and improved cash flow

Outlook

• Company expects Q3 net sales between $16.0 bln and $16.3 bln

• Performance Food revises full-year net sales to $67.25 bln-$68.25 bln

• Company anticipates Q3 Adjusted EBITDA between $390 mln and $410 mln

Result Drivers

• CASE VOLUME GROWTH - Total case volume increased 3.4%, with independent foodservice case volume up 6.7%, driving net sales growth

• SALES MIX AND PRICING - Net sales rose 5.2% due to increased case sales and higher selling prices per case, influenced by inflation

• GROSS PROFIT IMPROVEMENT - Gross profit increased 7.6% due to procurement efficiencies and favorable sales mix

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Performance Food Group Co is $120.00, about 23.6% above its February 3 closing price of $97.09

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw4DBNKya

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