The Performance Food Group will announce its results on May 5th before the opening
Performance Food Group Company (NYSE: PFGC) is a customer focused food service distributor in the United States. The company announced that it will release its third quarter results on Wednesday, May 5th, ahead of market hours. In the run-up to the event, we’ll look at the long-term and short-term profitability of the stock.
The Performance Food Group has managed to exceed earnings expectations in three of the last four earnings reports. However, this only resulted in a positive post-profit move, up 4.1% in February. For the past eight reports, regardless of direction, PFGC has seen an average post-profit move of 2.9%. This time the options market expects a slightly above-average movement of 3.9%.
Year-over-year, PFGC’s value has doubled, hitting a record high of $ 59.89 on March 15. Since then, stocks have consolidated below $ 60, with the 50-day ascending moving average seeing larger pullbacks in recent months.
There may still be room for the stock to continue running. From a value point of view, the share of the Performance Food Group is developing into a promising turnaround due to its astonishing sales growth. In fiscal 2020, PFGC increased sales by 27% from US $ 19.7 billion in fiscal 2019 to US $ 25 billion and increased sales by 50% since fiscal 2017. In addition, PFGC has already increased its trailing 12-month revenue by 26% to $ 26.67 billion in the last two quarters, an increase of 6%.
The bottom line is where things get shaky for the Performance Food Group. In fiscal 2020, PFGC had net losses of $ 114 million, which have increased to $ 174.5 million over the past four quarters. Overall, Performance Food Group’s net income has declined $ 373.2 million since fiscal 2018.
However, the contrast between the company’s growing sales and declining net profit is what makes PFGC such an interesting turnaround game. While there is high risk associated with investing in a company with a downward net income history, the potential reward for shares in Performance Food Group could be enormous if the company can make a profit.