Hot Stock Alert: US Foods Holding Corp. (NYSE: USFD)

On Thursday, Shares of US Foods Holding Corp. (NYSE: USFD) showed the bullish trend with a higher momentum of 3.97% to $38.25. The company traded total volume of 4,366,087 shares as contrast to its average volume of 1.56M shares. The company has a market value of $8.43B and about 220.36M shares outstanding.

US Foods Holding Corp. (USFD), one of the leading foodservice distributors in the United States, recently declared results for the fourth quarter and full fiscal year 2018.

Fourth Quarter Fiscal 2018 Results:

Net sales of $6.00B for the quarter increased 0.8% from the prior year, mainly because of year-over-year inflation in beef and grocery items and favorable product mix changes that were partially offset by the decrease in case volume.

Gross profit of $1.10B increased $17.0M, or 1.6%, from the prior year, mainly driven by margin expansion programs that were partially offset by the decrease in case volume. Gross profit as a percentage of Net sales was 18.1%. Adjusted Gross profit was $1.10B, a 1.7% increase from the prior year, mainly driven by margin expansion programs that were partially offset by the decrease in case volume. Adjusted Gross profit as a percentage of Net sales was 18.1%.

Operating expenses were $922.0M, a boost of 4.9% from the prior year. The increase was mainly driven by higher wage, fuel and acquisition-related costs that were partially offset by the positive impact of expense control programs. Adjusted Operating expenses for the quarter were $800.0M, a 1.9% increase from the prior year, mainly driven by higher wage and fuel costs that were partially offset by the positive impact of expense control programs.

Income before income taxes was $132.0M, a $5.0M decrease from the prior year.

Net income was $100.0M, down $156.0M from $256.0M in the prior year. Fourth quarter fiscal 2017 benefited from the changes in the U.S. federal income tax code that resulted in a net tax benefit of $119.0M for that quarter contrast to a tax expense of $32.0M for fourth quarter fiscal 2018. Adjusted EBITDA of $297.0M increased $7.0M, or 2.4%, contrast to the prior year. Diluted EPS was $0.46 and Adjusted Diluted EPS was $0.56.

Fiscal Year 2018 Results:

Net sales of $24.20B increased 0.1% from the prior year, mainly because of year-over-year inflation in beef and grocery items and the impact of acquisitions made in 2017 that were partially offset by the decrease in case volume.

Gross profit of $4.30B increased $88.0M, or 2.1%, from the prior year, mainly driven by margin expansion programs and a reduction in our year-over-year last-in, first-out (LIFO) expense that were partially offset by the decrease in case volume. Gross profit as a percentage of Net sales was 17.8%. Adjusted Gross profit was $4.30B, a 1.7% increase from the prior year, mainly driven by margin expansion programs and the impact of acquisitions made in 2017 that were partially offset by the decrease in case volume. Adjusted Gross profit as a percentage of Net sales was 17.8%.

Operating expenses were $3.60B, a boost of 0.5% from the prior year. The increase was mainly driven by higher wage, fuel and acquisition-related costs that were partially offset by lower amortization expense resulting from the full amortization of an intangible asset and the positive impact of expense control programs. Adjusted Operating expenses were $3.20B, a 1.1% increase from the prior year, mainly driven by higher wage and fuel costs that were partially offset by the positive impact of expense control programs.

Income before income taxes was $496.0M, a $92.0M increase from the prior year.

Net income for fiscal year 2018 was $407.0M, down $37.0M from $444.0M in the prior year mainly as a result of the Gross profit, Operating expense and income tax factors discussed above. Adjusted EBITDA of $1,103.0M increased $45.0M, or 4.3% contrast to the prior year. Diluted EPS was $1.87 and Adjusted Diluted EPS was $2.03.

Cash Flow and Capital Transactions:

Net cash offered by operating activities for fiscal year 2018 was $609.0M, net of a combined $102.0M of increased cash income taxes and an incremental, voluntary pension plan contribution. In fiscal year 2017, the company paid $11.0M of cash income taxes contrast to $78.0M in fiscal year 2018. Mainly as a result of working capital investments to build safety stock, the increase in cash income taxes and the incremental, voluntary pension plan contribution, Net cash offered by operating activities reduced $140.0M from the prior year. Cash capital expenditures for fiscal year 2018 totaled $235.0M, a boost of $14.0M from the prior year, mainly because of a boost in capital spending for buildings and equipment.

Net Debt at the end of fiscal year 2018 was $3.40B, a decrease of $286.0M as compared to the end of fiscal year 2017. The ratio of Net Debt to Adjusted EBITDA was 3.0x at the end of fiscal year 2018, down from 3.4x at the end of fiscal year 2017.

The Company offered net profit margin of 1.70% while its gross profit margin was 17.80%. ROE was recorded as 13.30%. The stock, as of recent close, has shown the weekly upbeat performance of 4.65% which was maintained at 20.89% in this year.

Leave a Reply

Your email address will not be published. Required fields are marked *