Sysco Corporation (NYSE:SYY) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. While revenues of US$20b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit US$0.99 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the consensus forecast from Sysco's 14 analysts is for revenues of US$82.2b in 2025. This reflects a modest 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to US$4.44. In the lead-up to this report, the analysts had been modelling revenues of US$82.2b and earnings per share (EPS) of US$4.55 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at US$84.21, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Sysco at US$91.00 per share, while the most bearish prices it at US$76.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sysco's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2025 being well below the historical 9.8% p.a. growth over the last five years. Compare this to the 64 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.7% per year. Factoring in the forecast slowdown in growth, it looks like Sysco is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$84.21, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sysco. Long-term earnings power is much more important than next year's profits. We have forecasts for Sysco going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Sysco .

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