Performance Food Group Beats Earnings Estimates Despite Missing Revenue Target
May 11, 2023
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Performance Food ($NYSE:PFGC) Group, a leading U.S. foodservice distribution company, recently reported its earnings for the quarter. The results showed that while their Non-GAAP Earnings Per Share (EPS) of $0.83 exceeded expectations by $0.12, revenue of $13.8 billion was below estimates by $130 million. This led to a mixed performance overall as the company’s earnings beat expectations but revenue fell short. Performance Food Group is traded on the New York Stock Exchange under the symbol PFGC and is widely followed by analysts and investors.
Stock Price
Performance Food Group (PFG) reported its quarterly earnings on Wednesday, surpassing market expectations despite missing its revenue target. The company opened at $61.7 and by the end of the day had dropped 3.3% to close at $59.6. The decline was primarily driven by investors’ disappointment with the company’s inability to meet its revenue target. This was due to strong cost control and efficiency gains in the company’s supply chain operations.
Overall, the positive financial results demonstrate that PFG is well-positioned to handle the challenges posed by the current economic climate. The company is optimistic that its strategies of cost control, streamlining operations, and developing new products will continue to drive future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Performance Food. More…
| Total Revenues | Net Income | Net Margin |
| 56.29k | 266.2 | 0.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Performance Food. More…
| Operations | Investing | Financing |
| 547.2 | -303.1 | -247.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Performance Food. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.19k | 8.69k | 22.66 |
Key Ratios Snapshot
Some of the financial key ratios for Performance Food are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 35.0% | 22.4% | 1.0% |
| FCF Margin | ROE | ROA |
| 0.5% | 10.4% | 3.0% |
Analysis
As GoodWhale has examined, PERFORMANCE FOOD is very strong in terms of growth, but its asset, profitability, and dividend scores are all of medium strength. From this, we can conclude that PERFORMANCE FOOD has achieved high revenue or earnings growth but is considered less stable due to lower profitability. In terms of its health score, GoodWhale has given PERFORMANCE FOOD an 8/10; this indicates that the company is capable to pay off debt and fund future operations. As such, we categorize PERFORMANCE FOOD as a ‘cheetah’ type of company. Considering this analysis, investors looking for a high growth potential with some degree of risk may find PERFORMANCE FOOD an attractive investment. They should also take into account the medium scores in asset, profitability, and dividend, which suggest that the stock may be more volatile than typical investments. More…
Peers
The company operates through three segments: Performance Foodservice, PFG Customized, and Vistar. Performance Foodservice segment offers food and non-food products to independent restaurants, quick-service restaurants, caterers, and national restaurant chains. PFG Customized segment provides food and non-food products to customers who desire a customized distribution solution. Vistar segment supplies non-food products, equipment, and solutions to customers in the vending, office coffee service, theatre, and foodservice management industries.
– US Foods Holding Corp ($NYSE:USFD)
With a market capitalization of $6.66 billion as of 2022, US Foods Holding Corp is a publicly traded foodservice distributor. The company operates a network of nearly 300 distribution centers across the United States, serving more than 250,000 customers. US Foods Holding Corp also offers a variety of foodservice solutions, including custom-cut meat, seafood, and poultry; branded and private label products; and kitchen supplies and equipment. The company’s return on equity was 6.98% as of 2022.
– Sysco Corp ($NYSE:SYY)
Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of brands includesSysco, Brakes, FreshPoint and EFS. The company operates approximately 330 distribution facilities worldwide and serves more than 625,000 customer locations.
– Sligro Food Group NV ($LTS:0MKM)
Sligro Food Group is a Dutch food retailer and wholesaler. The company has a market cap of 662.56M as of 2022 and a return on equity of 8.07%. The company operates a chain of supermarkets and hypermarkets under the brand name “Sligro”.
Summary
Performance Food Group reported Non-GAAP earnings per share of $0.83, exceeding analyst estimates by $0.12.
However, the company’s revenue of $13.8 billion fell short of expectations by $130 million. This news caused the stock price to decline on the same day. Investors should keep an eye on Performance Food Group’s future performance as there may be potential opportunities to benefit from the company’s strong earnings results. The company’s financial health and balance sheet should also be monitored.
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