What to expect from Performance Food Group's (PFGC) Q3 earnings

What happened

Performance Food Group will report quarterly earnings on Wednesday before the market opens. Last quarter it reported revenue of $18.03 billion, up 6.4% from a year earlier. The market expects revenue to grow 5.5% this quarter, slower than the 10.8% increase in the same quarter last year.

Confirmed

Global impact / market context

Slower expected revenue growth means the company may sell more food to restaurants and stores, but at a weaker pace than before. If growth keeps slowing, profit per sale and cash available could come under pressure, which matters to investors holding the stock.

Analyst inference

The company has missed Wall Street revenue estimates several times over the past two years, and analysts reconfirmed their estimates in the last 30 days, suggesting they expect the business to stay the course. Some consumer discretionary peers already reported results, giving hints about demand.

Analyst inference

What to watch

1. Watch whether reported revenue grows 5.5% year on year, the figure the market expects this quarter. Confirmed
2. Watch whether management keeps its full-year revenue guidance unchanged, since last quarter guidance met analysts' expectations. Proposed
3. Watch profit per sale and cash available, because slowing revenue growth could pressure costs and the company's ability to fund operations. Analyst inference

Evidence

• stockstory.org