By Rob Curran
Performance Food Group (PFG), based in Richmond, Virginia, has announced a rise in net income for the fiscal second quarter. The company, which distributes snacks and perishable foods, reported earnings of $78.3 million, or 50 cents a share, for the three months ending in December. This is an increase from $71.1 million, or 46 cents a share, for the same period last year.
After adjusting for certain one-time items, per-share earnings stood at 90 cents a share, just below the average analyst estimate of 92 cents a share.
Second-quarter sales for PFG rose by 2.9% to $14.3 billion, surpassing the average Wall Street estimate of $14.2 billion. The growth was driven by increased sales volumes of processed foods.
The company's food-service unit, its largest division, experienced a sales increase of 2.6% to $7.1 billion during the second quarter. The Convenience unit, which supplies convenience stores, saw sales rise by 1.3% to $5.9 billion. This growth can be attributed to higher food prices and a cigarette price increase.
For the fiscal third quarter, PFG expects sales to range between $14 billion and $14.3 billion, with adjusted earnings before interest, taxes, depreciation, and amortization projected to be between $310 million and $330 million.
PFG remains confident in its growth projections for the full year, targeting sales of $59 billion to $60 billion. The company also maintains its adjusted EBITDA target of between $1.45 billion and $1.5 billion for the year.
The Importance of Taking a Long-Term View in Economics
Our Latest News
Wizz Air Expects Capacity Reduction After Engine Inspection
Wizz Air's capacity will be affected by engine inspections, leading to potential reduction and financial consequences.
Shares of Banks and Financial Institutions Flat as Consumers Pull Back on Credit-Card Spending
Consumers cutting credit-card spending causes shares of banks to remain flat, raising concerns among investors. Treasury yields near multi-year high indicate ma...
Crypto Market Update
The cryptocurrency market had mixed movements, with Dogecoin (DOGE) rising and Solana (SOL) falling. Cardano (ADA) and Uniswap (UNI) also saw notable increases....