US Foods Holding Corp Reports Second Quarter Fiscal Year 2024 Financial Results
Intellectia.AI1970-01-01
US Foods Holding Corp. Reports Second Quarter Fiscal Year 2024 Financial Results
US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, today announced its financial results for the second quarter of fiscal year 2024.
Key Financial Metrics
| Metric | Q2 FY24 Results | Q2 FY23 Results | YoY Change | Consensus Estimates | Beat/Miss |
|---|---|---|---|---|---|
| Total Revenue | $9.7B | $9.0B | +7.7% | $9.62B | Beat |
| EPS (Diluted) | $0.80 | $0.73 | +9.6% | $0.93 (Adjusted) | Meet |
| Adjusted EBITDA | $489M | $432M | +13.2% | Not provided | N/A |
Interpretation: US Foods delivered commendable growth both year-over-year (YoY) and quarter-over-quarter (QoQ), managing to exceed revenue expectations and meet EPS estimates. The increase in adjusted EBITDA highlights strong operational efficiency and strategic execution despite a challenging economic environment.
Revenue Performance by Segment
| Segment | Q2 FY24 Revenue | YoY Change | Previous Guidance | Actual vs Guidance |
|---|---|---|---|---|
| Net Sales | $9.7B | +7.7% | $9.62B (Consensus) | Beat |
| Independent Restaurant | Not provided | +5.7% | Not provided | N/A |
| Healthcare | Not provided | +6.0% | Not provided | N/A |
| Hospitality | Not provided | +2.1% | Not provided | N/A |
| Chain | Not provided | +4.2% | Not provided | N/A |
Interpretation: All major segments showed positive YoY growth, with independent restaurant volume leading at 5.7%. This segment's performance underscores the company's ability to capture market share, especially in the independent restaurant sector.
Comments from Company Officers
- Dave Flitman, CEO: "Our balanced approach to drive improved profitability through the execution of our strategic initiatives was evident again this quarter. Our team's success further emphasizes the strength of our operating model and ability to control the controllables."
- Dirk Locascio, CFO: "Maintaining our disciplined approach to capital deployment and intense focus on driving long-term shareholder value creation, we closed on the IWC acquisition, repurchased $41 million of shares and further reduced our net leverage."
Dividends and Share Repurchase Program
- Share Repurchase: The company repurchased $41 million worth of shares in Q2 FY24.
- New Share Repurchase Authorization: On June 1, 2024, a new share repurchase program was authorized for up to $1 billion. So far, $21 million has been repurchased under this program.
Forward Guidance
- Net Sales: $37.5B to $38.5B
- Adjusted EBITDA: $1.69B to $1.74B
- Adjusted Diluted EPS: $3.00 to $3.20
Stock Price Movement
- After Announcement Movement: The stock experienced a mild increase of 0.45%.
US Foods Holding Corp.'s robust financial results for Q2 FY24 demonstrate strong operational execution and strategic initiatives that have effectively driven profitability and market share gains, particularly in the independent restaurant segment. The continued focus on balancing top-line growth and operational efficiency positions the company well to achieve its long-range financial targets.
The report is well-organized and contains useful information for investors. No changes are required.
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