What surprises could SYY's Q3 2025 EPS report hold?

Sysco's Q3 2025 EPS report is likely to show a company that has navigated a mixed landscape of growth and inflationary pressures, with some potential surprises depending on the specific metrics disclosed.

1. Revenue Growth: Sysco has seen a consistent trend of revenue growth, with a year-over-year increase of 2.7% in Q3 2024, reaching $19.38 billion. This growth trajectory suggests a strong market presence, although it falls slightly short of the Zacks Consensus Estimate. For Q3 2025, watch for continued growth, potentially reaching around $20 billion, driven by the company's broad distribution network and resilience in the face of economic headwinds.

2. Earnings Per Share (EPS): Sysco's EPS for Q3 2024 was $0.96, up from $0.90 in the prior year. The company has beaten EPS estimates 63% of the time over the last two years. Expectations for Q3 2025 might be slightly higher, potentially reaching $1.00 per share, reflecting improved profitability and operational efficiency.
3. Surprise Potential: Given the company's historical track record, there is a possibility that Sysco could exceed market expectations with its EPS. However, the absence of specific data for Q3 2025 makes it challenging to predict the exact surprise factor. If the company manages to navigate inflationary pressures better than anticipated and sees stronger growth in its core markets, the EPS could surprise positively.
4. Inflation and Cost Management: Sysco has faced inflationary pressures, with US Foodservice Inflation at 0.5% for the year. The company's ability to manage costs and pass on price increases to customers will be crucial in maintaining profit margins. If Sysco demonstrates effective cost management or benefits from easing inflation, its EPS could be higher than expected.
5. Dividend and Share Buybacks: Sysco has a history of consistent dividend payments and active share buyback programs. While these actions do not directly impact EPS, they reflect the company's financial health and potential returns for investors. Watch for any updates on dividends or share repurchases that could influence investor sentiment and the stock's performance.

In conclusion, Sysco's Q3 2025 EPS report is likely to show continued growth, with potential for a slight positive surprise due to the company's strong market position and ability to navigate inflationary pressures. However, the absence of specific data for Q3 2025 makes it challenging to predict the exact figures.