Performance Food Group (NYSE:PFGC) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Performance Food Group (NYSE:PFGC) issued its quarterly earnings results on Wednesday. The food distribution company reported $1.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.60 by ($0.01), FiscalAI reports. The firm had revenue of $18.03 billion for the quarter, compared to analyst estimates of $18.11 billion. Performance Food Group had a return on equity of 15.35% and a net margin of 0.53%.The company’s revenue was up 6.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.84 earnings per share.

Here are the key takeaways from Performance Food Group’s conference call:

• Strong fourth-quarter performance: Net sales increased 6.4%, net income rose 23.4% to $162.3 million, and adjusted EBITDA grew 7.4% to $587.5 million, near the top end of guidance.
• All three segments are expected to grow in fiscal 2027. Foodservice reported 5.8% independent case growth, Convenience benefited from Love’s and RaceTrac wins, and Specialty’s sales growth accelerated to 6.6% in the fourth quarter.
• Management guided to fiscal 2027 sales of $72.5 billion-$73.0 billion and adjusted EBITDA of $2.125 billion-$2.225 billion, representing midpoint growth of 7.2% and 12.7%, respectively, including the benefit of a 53rd week.
• Procurement initiatives, private-brand expansion, operational efficiency efforts, and M&A synergies are expected to support margin improvement; management remains confident it can meet or exceed the high end of its $120 million-$125 million procurement-synergy target by fiscal 2028.
• Elevated diesel costs contributed approximately $16 million of expense in the fourth quarter, while inflation is expected to remain in the low- to mid-single digits in fiscal 2027. Fuel pressure and residual costs related to the Cheney Brothers integration are expected to weigh on early-year results before easing in the second half.

Performance Food Group Price Performance

NYSE PFGC traded up $1.54 during mid-day trading on Friday, hitting $106.02. The stock had a trading volume of 96,481 shares, compared to its average volume of 1,974,352. The company has a 50 day simple moving average of $109.59 and a 200 day simple moving average of $97.90. The company has a market cap of $16.65 billion, a price-to-earnings ratio of 46.29, a P/E/G ratio of 1.35 and a beta of 0.91. Performance Food Group has a 52-week low of $80.82 and a 52-week high of $117.47. The company has a quick ratio of 0.68, a current ratio of 1.52 and a debt-to-equity ratio of 1.40.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. BMO Capital Markets reaffirmed an “outperform” rating on shares of Performance Food Group in a report on Thursday. Morgan Stanley raised their price target on Performance Food Group from $120.00 to $131.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Citigroup increased their price objective on Performance Food Group from $143.00 to $144.00 and gave the stock a “buy” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $133.00 target price on shares of Performance Food Group in a research report on Thursday. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Performance Food Group in a research note on Thursday. Eleven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $124.70.

Insider Activity

In related news, Director Kimberly Grant sold 2,500 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $95.00, for a total value of $237,500.00. Following the sale, the director directly owned 11,935 shares of the company’s stock, valued at approximately $1,133,825. This represents a 17.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider A Brent King sold 6,111 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $105.00, for a total transaction of $641,655.00. Following the transaction, the insider owned 44,260 shares of the company’s stock, valued at $4,647,300. This trade represents a 12.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 27,187 shares of company stock worth $2,743,695 over the last 90 days. 4.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Performance Food Group

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC raised its holdings in shares of Performance Food Group by 440.2% in the second quarter. EverSource Wealth Advisors LLC now owns 659 shares of the food distribution company’s stock worth $58,000 after acquiring an additional 537 shares during the last quarter. Los Angeles Capital Management LLC purchased a new position in Performance Food Group in the 4th quarter valued at about $67,000. AlphaCentric Advisors LLC acquired a new stake in shares of Performance Food Group during the 4th quarter worth about $82,000. Smartleaf Asset Management LLC grew its holdings in shares of Performance Food Group by 16.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,012 shares of the food distribution company’s stock worth $91,000 after buying an additional 143 shares in the last quarter. Finally, Johnson Financial Group Inc. acquired a new position in shares of Performance Food Group in the third quarter valued at approximately $114,000. Hedge funds and other institutional investors own 96.87% of the company’s stock.

Performance Food Group Company Profile

Performance Food Group Company (NYSE: PFGC) is a leading foodservice distribution company headquartered in Richmond, Virginia. The company operates through multiple segments, offering a broad range of products including fresh, frozen and dry foods, as well as non-food items such as supplies, paper goods and equipment. Performance Food Group serves a diverse customer base that encompasses independent and multi-unit restaurants, healthcare facilities, hospitality venues, schools, and other institutional customers.

Through its national broadline division, Performance Food Group provides next-day delivery of products sourced from both company-owned processing facilities and third-party suppliers.