Food Performance Group ‘s ( PFGC 1.20% ) Stocks have been showing strong performance in recent trading days, with an increase of almost 12% in value by early Friday morning compared to the beginning of the week. This information is based on data gathered by. S&P Global Market Intelligence is the name of a particular market research company. The primary reason was not a secret – the food company released a highly positive quarterly financial report.
An impressive surpassing of earnings.
Performance reported its financial results for the fourth quarter ahead of the market opening on Tuesday. The company disclosed that its net sales increased by over 2% to reach $15.2 billion during the period. Additionally, net income experienced a significant surge, climbing by nearly 11% to $166.5 million. On a per-share basis, the earnings also showed growth. GAAP On an adjusted basis, the contrast was even more pronounced – the net profit reached $1.45, compared to the $1.14 in the fiscal fourth quarter of 2023.
Performance fell just short of meeting the net sales target set by analysts, who had anticipated a figure close to $15.3. However, the company exceeded expectations in terms of adjusted profitability, with an average estimate of $1.37 per share.
The company aims to expand its business through acquiring other companies. On the morning of its financial report, the company announced its plan to purchase Cheney Brothers, a food service distributor based in Florida. The acquisition will cost around $2.1 billion, to be paid in cash, and is anticipated to be finalized in 2025.
It is anticipated that more than $15 billion will be received in fiscal year 2025.
Performance has also provided a forecast for its fiscal year 2025. The company predicts that it will generate net sales ranging from $15.2 billion to $15.5 billion during this period. This is expected to result in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $400 million to $420 million. However, similar to the second-quarter revenue figure, this projected range falls slightly below the average analyst estimate of $15.57 billion.
