Performance Food Group beats profit expectations as gross margin improves, but revenue comes up shy

Performance Food Group Co. (PFGC) reported Wednesday fiscal third-quarter profit that beat expectations but revenue that came up shy and trimmed its full-year outlook. The foodservice distribution company's stock was still inactive in premarket trading. Net income climbed to $80.3 million, or 51 cents a share, from $23.4 million, or 15 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 83 cents was above the FactSet consensus of 71 cents. Sales grew 5.3% to $13.77 billion, boosted by an increase in selling price per case and case volume growth, but was below the FactSet consensus of $13.92 billion. Foodservice sales rose 5.2% to $6.9 billion and convenience sales increased 1.9% to $5.7 billion. Cost of goods sold rose less than sales, up 4.5% to $12.26 billion, as gross margin improved to 11.0% from 10.3%. For 2023, the company lowered its guidance range for sales to $57.0 billion to $57.5 billion from $57 billion to $59 billion, which compares with the FactSet consensus of $57.9 billion. The stock has tacked on 5.7% year to date, while the S&P 500 has gained 7.3%.

-Tomi Kilgore

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05-10-23 0729ET

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