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Sysco shares rise after Q1 earnings beat, growth

Sysco trucks
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Shares of Sysco rose more than 9 percent Monday after the company reported double-digit earnings growth in its first quarter.

Sysco posted Monday fiscal first-quarter earnings of 67 cents per share on revenue of $14 billion. Analysts had expected 58 cents a share on revenue of $13.9 billion, according to Thomson Reuters consensus estimates.

Sysco attributes the results to the performance of its recent acquired Brakes Group, a U.K.-based food distributor which expanded the company's international reach.

"I am pleased with our first quarter performance which built upon the favorable results we have achieved over the past several quarters," said CEO Bill DeLaney in an earnings release.

The company said gross profit increased 20.3 percent to $2.7 billion and adjusted operating income increased 23.8 percent to $627 million. It also said sales in its U.S. food-service operations were $9.5 billion in the first quarter, a 0.8 percent increase compared to the same period last year. U.S. international sales were $2.7 billion in the quarter, compared to $1.4 billion in the same period last year.

The company's stock is up more than 26 percent year to date.

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