Packaged foods company General Mills (NYSE: GIS) will be reporting results this Wednesday before the bell. Here’s what to look for.
General Mills missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $4.56 billion, down 3.3% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EBITDA estimates but a slight miss of analysts’ gross margin estimates.
Is General Mills a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting General Mills’s revenue to decline 7% year on year to $4.51 billion, a further deceleration from the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 13 analysts). General Mills has missed Wall Street’s revenue estimates four times over the last two years.
With General Mills being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer staples stocks. However, the segment has faced declining investor sentiment as General Mills’s peer group is down 2.3% on average over the last month. General Mills’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $54.75 (compared to the current share price of $49.38).
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