US Foods Q3 revenue misses estimates; trims FY sales view
USFD•US Foods' Q3 revenue rose 2.1% to $10.40 billion, below the $10.59 billion consensus, while adjusted EPS rose 17.8% to $1.26 and beat estimates. The company lowered its full-year sales, adjusted EBITDA and adjusted diluted EPS growth outlooks.
1. Quarterly results
US Foods reported Q3 net sales of $10.40 billion, up 2.1% but below analysts’ $10.59 billion consensus. Adjusted EPS rose 17.8% to $1.26, beating the $1.24 estimate. Net income was $218 million, and gross profit was $1.90 billion.
2. Lowered outlook
The company now expects full-year net sales growth of 4% to 5%, compared with its prior forecast of 4% to 6%. It also lowered its outlook for adjusted EBITDA growth to 9% to 11% from 9% to 13%, and adjusted diluted EPS growth to 18% to 20% from 18% to 24%.
3. Sales drivers
US Foods said higher case volumes in independent restaurants, healthcare and hospitality drove overall sales growth. It attributed higher gross profit to increased case volume, improved cost of goods sold and a favorable LIFO adjustment, and said digital and AI initiatives contributed to topline growth, productivity gains and margin expansion. The company repurchased $191 million of shares in Q3.
