Performance Food Group Company (NYSE:PFGC) shares are trading higher on Wednesday.
The company reported that the third quarter adjusted earnings per share was 80 cents, which missed the street view of 84 cents.
Total case volume decreased 0.2%, while net sales increased 0.6%. Quarterly sales of $13.858 billion missed the street view of $14.188 billion.
George Holm, PFG's Chairman & Chief Executive Officer, said, "After a challenging January due to tough weather conditions, our business saw sequential improvement in February and March."
Third-quarter net sales for Foodservice increased 1.0% to $7 billion compared to the prior year period. Vistar's net sales increased by 1.7% to $1.1 billion. Third-quarter net sales for Convenience decreased 0.7% to $5.6 billion.
Gross profit in the quarter under review improved 3.8% to $1.6 billion, while adjusted EBITDA increased 1.9% to $320.7 million.
The gross profit increase was primarily attributable to a favorable shift in the mix of cases sold, including growth in the independent channel and Performance Brands, as well as cost of goods sold optimization through procurement efficiencies, and recent acquisitions.
Outlook: For the fourth quarter of fiscal 2024, Performance Food Group expects net sales of $15 billion to $15.4 billion versus the consensus of $15.6 billion.
For the fourth quarter, PFG expects Adjusted EBITDA to be in a range of $430 million to $450 million.
For the full fiscal year 2024, Performance Food Group now expects net sales of approximately $58.1 billion to $58.5 billion compared to the prior expectation of a $59 billion to $60 billion range (estimate: $59.02 billion).
The company now expects Adjusted EBITDA to be in a $1.48 billion to $1.5 billion range compared to the previously announced $1.45 billion to $1.5 billion range.
Price Action: PFGC shares are trading higher by 0.55% to $69.67 at last check Wednesday.