Performance Food Group (PFGC) Quarterly Earnings Miss Expectations
In a recent financial report, Performance Food Group (PFGC) announced earnings of $0.98 per share for the latest quarter. This figure fell short of the Zacks Consensus Estimate of $1.03 per share.
Company Performance
The reported earnings represent a modest increase compared to the same quarter last year when the company reported earnings of $0.90 per share. The revenue for the quarter was reported at $2.2 billion, also missing the consensus estimate of $2.24 billion.
Impact on Investors
The miss on earnings and revenue estimates has led to a negative response from the investors. In the after-hours trading, the stock price of PFGC dropped by more than 5%. The stock had already been underperforming the market, with a year-to-date return of -12% compared to the S&P 500’s return of 14%.
Industry Factors
The food distribution industry has been facing several headwinds, including increasing costs of raw materials and labor, supply chain disruptions, and changing consumer preferences. PFGC is not the only company in the industry to report disappointing earnings. Other players in the sector, such as Sysco Corporation and US Foods Holding Corp, have also missed their earnings estimates in recent quarters.
Impact on Consumers
The earnings miss by PFGC may not have a direct impact on consumers, but it could potentially lead to price increases in the food products distributed by the company. As the company navigates the challenges in the industry, it may need to pass on some of the increased costs to its customers.
Future Outlook
The company’s guidance for the full year 2023 also missed the consensus estimates, with earnings expected to be in the range of $3.88 to $3.95 per share, compared to the consensus estimate of $4.01 per share. The revenue guidance was also revised downward to a range of $8.8 billion to $8.9 billion, from the previous guidance of $9.0 billion to $9.1 billion.
Conclusion
The quarterly earnings report from Performance Food Group (PFGC) missed both earnings and revenue estimates, leading to a negative response from investors. The food distribution industry is facing several challenges, including increasing costs and supply chain disruptions. The earnings miss may not have a significant impact on consumers, but it could potentially lead to price increases. The company’s full-year guidance was also revised downward, adding to the uncertainty in the sector.
- PFGC reported earnings of $0.98 per share for the latest quarter, missing the consensus estimate of $1.03 per share.
- The revenue for the quarter was reported at $2.2 billion, also missing the consensus estimate of $2.24 billion.
- The miss on earnings and revenue estimates led to a negative response from investors, with the stock price dropping in after-hours trading.
- The food distribution industry is facing several challenges, including increasing costs of raw materials and labor, supply chain disruptions, and changing consumer preferences.
- The earnings miss may not have a significant impact on consumers, but it could potentially lead to price increases.
- The company’s full-year guidance was also revised downward, adding to the uncertainty in the sector.
