Sysco Corporation (SYY)

Reductions in Bad Debt Expense Boost EPS Even After Non-GAAP Adjustments

Sysco (SYY) is the largest distributor of food and related products to the food-away-from-home industry. We have covered SYY for years and noted that the company’s financial results seem to regularly benefit from multiple small, unusual items that together can be the key to whether earnings beat Wall Street targets. Before the pandemic, SYY typically beat earnings targets by 1-2 cps, so it usually does not take much of an unusual benefit to mean the difference between hitting or missing consensus estimates.