Wednesday 9th of February 2022 10:50:00 AM

Performance Food races 13% on guidance boost, upbeat earnings on Core-Mark Acquisition

Performance Food (NYSE:PFGC) jumps 13% on beating estimates on top and bottom line. The company changed its operating segments in Q2 to reflect the manner in which the business is managed. The Company now has three reportable segments: Foodservice, Vistar, and Convenience. Net sales increased 87.6% to $12.8 billion. The acquisition of Core-Mark contributed $4.2 billion, an increase in selling price per case as a result of inflation, and the declining adverse effects in prior year due to the COVID-19 pandemic. Segment sales:
  • Foodservice sales increased 27.2% Y/Y to $6.2 billion.
  • Convenience sales increased 318.6% Y/Y to $5.7 billion.
  • Vistar sales increased 54.3% to $907.3 million.
EBITDA increased 17.6% to $173.1 million in the second quarter of fiscal 2022 compared to the prior year period. Total case volume grew 40.0%. Total case volume included Core-Mark Holding and 21.0% increase in independent cases, excluding the impact of the Core-Mark acquisition, organic case volume increased 15.5% Y/Y. Outlook: The company bumped its FY22 sales from $49.5B to $50.5B to $50B to $51B vs. consensus of $50.02B. Adjusted EBITDA to be in a range of $970M million to $990M vs. prior outlook of $940M to $960M. 3Q22 Guidance: The company expects net sales to be in a range of $12.9B to $13.1B vs. consensus of $12.65B and Adjusted EBITDA to be in a range of $220M to $230M. Press Release

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