US Foods (NYSE: USFD) reported Q4 EPS of $0.44, $0.01 better than the analyst estimate of $0.43. Revenue for the quarter came in at $6 billion versus the consensus estimate of $5.92 billion.

Fourth Quarter 2017 Highlights

• Total case volume increased 1.9%; independent restaurant case volume increased 7.1%
• Net sales increased 5.6% to $6.0 billion
• Gross profit of $1.1 billion increased 4.6%
• Operating income increased $66 million to $182 million
• Net income of $256 million increased $179 million
• Adjusted EBITDA increased 9.4% to $290 million
• Diluted EPS of $1.15; Adjusted Diluted EPS of $0.44

Outlook for Fiscal Year 2018

For fiscal year 2018 the company expects total case volume growth of 1-2%, Net sales growth of 3-4%, Adjusted EBITDA growth of 6-8% and Adjusted Diluted EPS of $2.00-$2.10. For Q1 fiscal 2018, we expect year-over-year Adjusted EBITDA growth to be approximately 100 basis points below the low end of the range, primarily due to poor weather conditions and timing of the New Year’s holiday. Adjusted EBITDA growth is expected to sequentially accelerate through the fiscal year. The company is also raising its mid-term target for Adjusted EBITDA growth from 7-10% to 8-10%.

The company expects fiscal year 2018 Interest expense to be approximately $175-$180 million. Cash capital expenditures during fiscal 2018 are expected to be approximately $250-$260 million, and fleet capital leases are expected to be approximately $80 million. Depreciation and amortization expenses for fiscal year 2018 are expected to be approximately $340-$350 million. The company’s adjusted effective tax rate for fiscal year 2018 is estimated to be approximately 25-26%.

GUIDANCE:

US Foods sees Q1 2018 EPS of $2.00-$2.10, versus the consensus of $1.93.

For earnings history and earnings-related data on US Foods (USFD) click here.