RICHMOND, Va. - Performance Food Group Company (NYSE:PFGC), a leading food and foodservice distribution company, reported third-quarter fiscal 2024 earnings that fell short of Wall Street expectations.
The company announced an adjusted EPS of $0.80, which was below the analyst estimate of $0.85. Revenue for the quarter marginally increased by 0.6% to $13.9 billion, but still did not meet the consensus estimate of $14.11 billion.
Despite the shortfall in earnings and revenue compared to analyst expectations, the company's organic independent foodservice case volume saw a notable increase of 4.3%. However, total case volume experienced a slight decrease of 0.2%. The company's gross profit improved by 3.8% to $1.6 billion, and adjusted EBITDA rose by 1.9% to $320.7 million.
Performance Food Group's net income for the quarter decreased by 12.3% to $70.4 million, with diluted EPS dropping 11.8% to $0.45. Adjusted diluted EPS also saw a decrease of 3.6% compared to the same period last year. The company attributes the decrease in net income primarily to a decline in operating profit, partially offset by a decrease in income tax expense.
George Holm, PFG’s Chairman & Chief Executive Officer, expressed confidence in the company's long-term outlook despite a challenging fiscal third quarter. "After a tough January due to adverse weather conditions, our business saw sequential improvement in February and March," said Holm. He also highlighted the recovery in independent restaurant case growth and strong cash flow generation as positive indicators.
Looking forward, Performance Food Group has adjusted its revenue outlook for the fourth quarter of fiscal 2024 to a range of $15 billion to $15.4 billion, which is below the analyst consensus of $15.604 billion. The company has also revised its full fiscal year 2024 revenue guidance to a range of $58.1 billion to $58.5 billion, compared to the previous analyst consensus of $59.021 billion.
Performance Food Group is in the process of reviewing and updating its 3-year fiscal 2025 net sales and Adjusted EBITDA targets and plans to provide more details in August along with its fiscal fourth quarter 2024 earnings results.
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