Sysco Earns 49 Cents Per Share

The stock market is down a few points this morning. Obviously, traders are waiting for tomorrow’s election so this is causing some anxiety. Leaving aside any partisan issues, I think investors are nervous that the outcome may be undecided for a few days. That’s probably what concerns people most. I don’t think anyone wants to go through what we had in 2000 again.

Shares of Nicholas Financial ($NICK) took a beating on Friday. Don’t let that scare you. At Friday’s closing price, the stock yields almost exactly 4%. The company will have no trouble covering its dividend. As I said before, the earnings report was slightly disappointing. Note word slightly. All would have been fine if it was, say, four cents more, so how can a four-cent miss turn into a $1 per share loss? I’m not sure. That’s 25 times missing earnings for a stock going around seven times earnings. Such is the mindset of short-term trading.

This morning, Sysco ($SYY), the food services outfit, reported fiscal first-quarter earnings of 49 cents per share which was one penny below expectations. Sales rose 4.7% to $10.6 billion which was an all-time record for Sysco. The shares have pulled back some this morning, but I’m not too concerned. Sysco had a one penny share charge for some severance issues. Like NICK, Sysco pays a generous yield and the stock has had a good run since the market’s swoon in May.

Posted by on November 5th, 2012 at 10:09 am


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