Performance Food beats Q1 profit estimates on higher prices, cases sold

Overview

• U.S. food distributor's fiscal Q1 net sales rose 5.5%, meets analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations, rising 11.9% yr/yr

• Company cites higher case volume, inflation-driven pricing, and acquisitions for profit growth

Outlook

• Performance Food reiterates full-year fiscal 2027 net sales guidance of $72.5 bln to $73.0 bln

• Company maintains full-year fiscal 2027 Adjusted EBITDA outlook of $2.125 bln to $2.225 bln

• Performance Food expects Q2 net sales of $17.0 bln to $17.2 bln and Adjusted EBITDA of $490 mln to $510 mln

Result Drivers

• CASE VOLUME GROWTH - Co attributed higher net sales and profit to increased total and independent Foodservice case volumes

• INFLATION-DRIVEN PRICING - Co said net sales benefited from higher selling prices per case due to inflation

• ACQUISITIONS - Co said recent acquisitions contributed to net sales and gross profit growth

Company press release: ID:nBw5Yg6n8a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "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 Company is $130.00, about 34.7% above its November 3 closing price of $96.51

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)