Performance Food Q3 Loss Narrows, Adj. EPS Misses View; Q4 Sales, Adj. EBITDA To Be Up Sequentially

(RTTNews) - Performance Food Group Corp. (PFGC) on Wednesday reported that its third-quarter net loss was $7.6 million, narrower than prior year's loss of $40.2 million. Loss per share was $0.06, compared to loss per share of $0.35 in the prior year period.

The improvement mainly reflected a $40.8 million increase in operating profit, partially offset by a $1.9 million increase in interest expense and a $15.8 million decrease in income tax benefit.

Adjusted earnings per share were $0.19, compared to $0.58 last year.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.28 per share. Analysts' estimates typically exclude special items.

EBITDA increased 43 percent from last year to $105.8 million, while adjusted EBITDA fell 7.6 percent to $121.2 million. Gross profit improved 3.1 percent to $832.7 million.

Net sales for the third quarter grew 2.9 percent to $7.20 billion from $7 billion last year. Analysts expected net sales of $7.01 billion.

The increase in net sales was primarily attributable to the effects of the novel coronavirus pandemic, as well as an increase in selling price per case.

Total case volume decreased 4.2 percent. Total case volume included a 6.3 percent increase in independent cases and growth in Performance Brands cases.

Looking ahead for the fourth quarter, PFG expects net sales to be at least $8.2 billion and Adjusted EBITDA to be at least $185 million.

In pre-market activity on NYSE, Performance Food shares were losing around 1.5 percent to trade at $55.10.