Performance Food Group (PFGC) stock suffered a 5.28% plunge in Wednesday's pre-market trading session after the food distributor reported fiscal second-quarter adjusted earnings of $0.98 per share, missing analysts' consensus estimate of $1.05. Despite the earnings miss, PFGC's Q2 revenue of $15.64 billion exceeded the $15.50 billion expected by analysts.
The earnings disappointment came as a surprise to investors who had high expectations for PFGC's performance, given the company's strong revenue growth of 9.39% compared to the same period last year. Analysts were anticipating PFGC to continue its earnings momentum from the previous quarter, but the company fell short on this key profitability metric.
Looking ahead, PFGC provided guidance for fiscal Q3 revenue in the range of $15.2 billion to $15.6 billion and full-year revenue between $63 billion and $64 billion. While the revenue outlook remains positive, the market's reaction suggests concerns over the company's ability to translate top-line growth into bottom-line profits, putting pressure on PFGC's stock price.
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