Q1 2024 Earnings Report: Us Foods Holding Beats Expectations, Shows Revenue Growth

Barclays's Jeffrey A. Bernstein raised their price target on Us Foods Holding (NYSE: USFD) by 6.7% from $60 to $64 on 2024/05/10. The analyst maintained their Strong Buy rating on the stock.

Following the release of Us Foods Holding's Q1 2024 earnings report, Bernstein summarized the quarter by stating, "Q1 was modestly better than expected top to bottom." The company reported earnings per share (EPS) of $0.54, surpassing the Thomson Reuters Consensus Estimate of $0.53 and showing an 8% increase compared to Q1 2023's EPS of $0.50.

In terms of revenue, Us Foods Holding reported $8.95 billion for Q1 2024, beating the Thomson Reuters Consensus Estimate of $8.91 billion and representing a 4.8% increase over Q1 2023's revenue of $8.54 billion. Additionally, the company's adjusted EBITDA for the quarter stood at $356 million, showing a 5.6% year-over-year increase.

Looking ahead to FY 2024, Us Foods Holding's management maintained their guidance, which includes an EPS range of $3.00 to $3.20, a revenue range of $37.5 billion to $38.5 billion, and an adjusted EBITDA range of $1.69 billion to $1.74 billion.

CEO Dave Flitman expressed satisfaction with the Q1 results, highlighting the strength of Us Foods Holding's business model and its ability to overcome challenges. Flitman also emphasized the company's success in growing its market share with independent restaurants for twelve consecutive quarters. He further mentioned improvements in operational performance, including a 30% enhancement in safety results and nearly 4% growth in delivery productivity.

Flitman provided insight into the company's future plans, stating, "We remain intensely focused on executing our strategy and will maintain our disciplined approach to capital deployment to drive long-term shareholder value creation." He also mentioned an upcoming Investor Day on 2024/06/05, during which Us Foods Holding will present a new long-range plan.

In addition to Bernstein's rating and price target adjustment, other analysts also updated their outlooks on Us Foods Holding on 2024/05/10. Morgan Stanley's Brian Harbour raised their price target from $62 to $64 while maintaining a Strong Buy rating. BMO Capital's Kelly Bania increased their price target from $58 to $62 and reiterated a Buy rating. Truist Securities's Jake Bartlett raised their price target from $57 to $65 and maintained a Strong Buy rating.

When considering all top-rated analysts, 83.3% currently rate Us Foods Holding as a Strong Buy or Buy, while 16.7% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

According to analysts' consensus forecast, Us Foods Holding is expected to deliver earnings per share (EPS) of $2.68 for the upcoming year. If this prediction holds true, the company's next yearly EPS will represent a 29.7% increase compared to the previous year.

Since the release of Us Foods Holding's Q1 2024 earnings report on 2024/05/09, the stock price has remained unchanged. However, when considering the year-over-year performance, the stock has seen a significant increase of 45.3%. During the same period, Us Foods Holding has outperformed the S&P 500, which has experienced a 26.2% increase.

Barclays analyst Jeffrey A. Bernstein ranks in the top 9% out of 4,579 Wall Street analysts, according to WallStreetZen. With an average return of 5.5% and a win rate of 57.6%, Bernstein specializes in the Consumer Cyclical and Consumer Defensive sectors.

Us Foods Holding Corporation, operating through Us Foods Incorporated, is primarily engaged in distributing fresh, frozen, and dry food and non-food products to foodservice companies across the United States. The company's wide range of customers includes restaurants, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. With 69 distribution facilities and 80 cash and carry locations as of January 1, 2022, Us Foods Holding has established a strong presence in the industry. The company was incorporated in 2007 and is headquartered in Rosemont, IL.

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