Core Viewpoint - General Mills reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, but down from $1.17 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 5.26%, with the company previously expected to post earnings of $1.22 per share but actually reporting $1.40, resulting in a surprise of 14.75% [2] - Revenues for the quarter were $4.84 billion, missing the Zacks Consensus Estimate by 2.28%, and down from $5.1 billion year-over-year [3] - Over the last four quarters, General Mills has surpassed consensus EPS estimates four times and topped revenue estimates twice [2][3] Stock Performance and Outlook - General Mills shares have declined approximately 5.2% since the beginning of the year, compared to a decline of 4.5% for the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $4.75 billion, and for the current fiscal year, it is $4.36 on revenues of $19.79 billion [8] Industry Context - The Zacks Industry Rank for Food - Miscellaneous, which includes General Mills, is currently in the bottom 46% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [9]

Core Insights - General Mills reported mixed results for Q3 of fiscal 2025, with revenue of $4.8 billion falling short of analysts' expectations and down 5% year over year [2][3] - The company lowered its guidance for the remainder of the fiscal year, anticipating a decline in organic net sales and adjusted operating profit [3][10] Financial Performance - Adjusted EPS for Q3 2025 was $1.00, a 15% decline from $1.17 in Q3 2024, but above the expected $0.96 [4] - Revenue decreased to $4.84 billion from $5.1 billion in Q3 2024, reflecting a 5% year-over-year drop [4] - Adjusted operating profit fell to $801 million, down 12.4% year over year, while gross margin improved slightly to 33.9% [4][9] Segment Performance - North America Retail saw a 7% drop in net sales, and North America Pet experienced a 20% decrease in operating profit [7] - International segment sales declined by 4% due to unfavorable currency impacts, while North America Foodservice sales increased by 1% [7] Strategic Focus - General Mills is focused on product innovation and marketing to maintain competitiveness, leveraging strong brand equity and consumer preferences [5][6] - The company is implementing the Holistic Margin Management strategy to improve gross margins amidst rising input costs [9] Future Outlook - Management revised full-year guidance, predicting a 1.5% to 2% decline in organic net sales and a 7% to 8% decline in adjusted operating profit and EPS [10] - The company aims to reduce the cost of goods sold by 5% in fiscal 2026 through targeted cost efficiencies [10]

Financial Performance - Third-quarter net sales decreased by 5% to $4.8 billion, with organic net sales also down 5%, primarily due to retailer inventory reductions and unfavorable foreign currency exchange[5] - Operating profit for the third quarter was $891 million, down 2%, while adjusted operating profit decreased by 13% in constant currency to $801 million[6] - Diluted earnings per share (EPS) fell by 4% to $1.12, with adjusted diluted EPS down 15% in constant currency to $1.00[6] - The company expects organic net sales to decline by 2% to 1.5%, a revision from the previous expectation of flat to up 1%[30] - Adjusted operating profit and adjusted diluted EPS are projected to decrease by 8% to 7% in constant currency, compared to earlier estimates of a 4% to 2% decline[30] - Net earnings for the nine-month period ended February 23, 2025, were $2,016.9 million, compared to $1,958.9 million for the same period in the previous year, reflecting an increase of 2.97%[40] - Net earnings attributable to General Mills for the nine-month period ended February 23, 2025, were $2,001.2 million, compared to $1,939.1 million in the same period last year, representing an increase of about 3.2%[5] - Reported diluted earnings per share (EPS) for the quarter ended February 23, 2025, was $1.12, a decrease of 4% compared to $1.17 for the same quarter last year[68] - Adjusted diluted EPS for the same quarter was $1.00, reflecting a 15% decline from $1.17 year-over-year[68] Segment Performance - The North America Retail segment reported a 7% decline in net sales to $3.0 billion, with organic net sales down 6%[13] - The North America Pet segment's net sales were flat at $624 million, with organic net sales down 5%[15] - The North America Foodservice segment saw a 1% increase in net sales to $555 million, with organic net sales also up 1%[17] - International segment net sales decreased by 4% to $651 million, impacted by unfavorable foreign currency exchange[19] - North America Retail segment net sales fell by 7% to $3,009.1 million, while operating profit decreased by 14% to $648.1 million[36] - The International segment's net sales decreased by 4% to $651.3 million, with operating profit down 1% to $18.0 million[36] - The North America Pet segment reported flat net sales at $623.7 million, but operating profit decreased by 20% to $102.2 million[36] Cost Management and Savings Initiatives - Gross margin improved by 40 basis points to 33.9% of net sales, driven by Holistic Margin Management (HMM) cost savings, despite input cost inflation[9] - The Holistic Margin Management program is anticipated to deliver at least 5% savings in cost of goods sold for fiscal 2026, equating to approximately $600 million in gross productivity savings[27] - The company is reviewing cost-saving initiatives targeting at least $100 million in savings for fiscal 2026[27] - Unallocated corporate expenses totaled $56 million in Q3 FY2025, down from $64 million in Q3 FY2024, reflecting a decrease of approximately 12.5%[4] Cash Flow and Assets - Cash provided by operating activities totaled $2.3 billion through nine months, compared to $2.4 billion a year ago[25] - Cash flows from operating activities for the nine-month period were $2,306.6 million, down from $2,438.9 million in the prior year[40] - Cash and cash equivalents at the end of the period were $521.3 million, a decrease from $588.6 million at the end of the previous year[40] - Total assets increased to $32,706.2 million as of February 23, 2025, up from $30,860.5 million a year earlier, representing a growth of 5.97%[38] - Total current liabilities increased to $7,876.2 million from $7,061.9 million, marking a rise of 11.52%[38] - Long-term debt stood at $11,839.6 million, an increase from $11,015.1 million, indicating a rise of 7.48%[38] - Stockholders' equity decreased to $9,512.6 million from $9,691.3 million, reflecting a decline of 1.85%[38] Acquisitions and Divestitures - The company completed the sale of its Canada yogurt business for a pre-tax gain of $96 million and expects to close the sale of its U.S. yogurt business for approximately $2 billion in 2025[42] - The acquisition of NX Pet Holding, Inc. was completed for $1 billion, with recorded goodwill of $1,087 million and an indefinite-lived intangible asset of $289 million[45] - Transaction costs related to the sale of North American yogurt businesses and the Whitebridge Pet Brands acquisition totaled $33 million for the nine-month period ended February 23, 2025, compared to $1 million in the same period last year[4] - Integration costs related to the Whitebridge Pet Brands acquisition amounted to $7 million for the nine-month period ended February 23, 2025[4] Tax and Earnings Adjustments - The effective tax rate for the nine-month period ended February 23, 2025, was 20.5%, up from 19.5% in the same period last year[5] - Adjusted effective income tax rate for the quarter ended February 23, 2025, is 21.0%, compared to 18.4% for the same quarter in 2024[77] - The sum of adjustments to income taxes for the nine-month period is $(5.2) million, with a significant adjustment of $45.1 million in the previous year[77] - Goodwill impairment recorded for the nine-month period ended February 23, 2025, is $117.1 million[77] Product Management Challenges - Product recall net costs for the nine-month period are $(30.7) million, reflecting ongoing challenges in product management[77]

General Mills, Inc. (GIS) is likely to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 earnings on March 19. The Zacks Consensus Estimate for revenues is pegged at almost $5 billion, implying a 2.8% decrease from the prior-year quarter’s reported figure. The consensus mark for earnings has moved down by a penny in the last seven days to 95 cents per share, indicating a decline of 18.8% from the year-ago quarter’s reported figure. GIS has a trailing four-quarter earni ...

Core Viewpoint - General Mills Inc is set to report its fiscal third-quarter earnings, with analysts expecting earnings per share of 95 cents and revenue of $4.96 billion [1] Group 1: Stock Performance - General Mills' stock is currently down 0.1% at $59.79, having faced a decline since reaching a multi-month high of $64.95 [2] - The stock is on track for its fourth consecutive daily loss, contributing to a 6% year-to-date decline [2] Group 2: Earnings History and Expectations - Historically, General Mills' stock has either fallen or remained flat after five of its past eight earnings reports, with an average shift of 2.6% [3] - Traders are anticipating a larger-than-usual move of 6.5% for the shares following the upcoming earnings report [3] Group 3: Analyst Recommendations and Short Interest - There is potential for upgrades, as 13 out of 18 brokerage firms currently have a "hold" recommendation on the stock [4] - Short interest has increased by 17.2% over the past two reporting periods, representing 4.8% of the stock's total available float [4] Group 4: Options Activity - Bullish sentiment is evident in the options market, with a 10-day call/put volume ratio of 3.38, which is higher than 72% of annual readings [5] - General Mills has historically outperformed options traders' volatility expectations, as indicated by a Schaeffer's Volatility Scorecard of 94 out of 100 [5]

Core Viewpoint - General Mills is expected to report a decline in quarterly earnings and revenues, with analysts predicting earnings of $0.95 per share, an 18.8% decrease year-over-year, and revenues of $4.96 billion, a 2.8% decrease compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been adjusted downward by 2.4% over the past 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts forecast 'Net Sales- North America Foodservice' to reach $576.36 million, reflecting a year-over-year increase of 4.5% [5]. - 'Net Sales- International' is expected to be $686.85 million, indicating a 1% year-over-year increase [5]. - 'Net Sales- North America Pet' is projected at $636.11 million, showing a 1.9% increase year-over-year [5]. - 'Net Sales- North America Retail' is anticipated to be $3.07 billion, representing a 5.3% decrease from the previous year [6]. Operating Profit Estimates - 'Operating Profit- North America Retail' is expected to be $671.69 million, down from $752.20 million year-over-year [6]. - 'Operating Profit- International' is projected at $20.31 million, an increase from $18.20 million in the same quarter last year [7]. - 'Operating Profit- North America Pet' is forecasted to reach $131.74 million, compared to $128.30 million in the same quarter of the previous year [7]. - 'Operating Profit- North America Foodservice' is expected to be $88.74 million, up from $81.70 million in the same quarter last year [8]. Stock Performance - General Mills shares have increased by 0.5% over the past month, contrasting with a -9.6% change in the Zacks S&P 500 composite [9]. - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [9].

General Mills (NYSE: GIS ) is not getting much love from investors right now. The stock is trading more than 30% below its all-time high and has significantly underperformed the broader market since the end of 2023.Runner of the TEV Blog | Private InvestorI am a long-term oriented investor and in my early thirties. I hold a law degree and a doctorate in law and love investing and talking about my and others' investments. I regularly write about my research and investments on various investor platforms and t ...

Core Viewpoint - The individual expresses a strong preference for fundamental analysis over technical analysis in evaluating companies, emphasizing the importance of actual results rather than price movements [1] Group 1: Investment Focus - The individual primarily invests in stocks and ETFs, with a preference for US companies, while also analyzing European and Chinese companies [1] - Investments are approached with a long-term perspective, often taking a contrarian view [1] Group 2: Sector Interest - The banking sector is highlighted as a key area of interest, viewed as fundamental for understanding the health of an economy [1] - There is a noted interest in macroeconomics, indicating a broader perspective on economic factors influencing investments [1]

Group 1 - Stocks began the week lower due to investor concerns regarding the health of the AI trade, although four of the S&P 500's 11 sectors were rising, particularly healthcare and consumer staples, which were up more than 1% [1] - Over 50 stocks increased by more than 2%, including telecommunications shares boosted by AT&T's positive earnings report and staples companies like Kraft Heinz, JM Smucker, and General Mills [2] - The S&P's information technology sector was the largest decliner, down 5%, with significant drops in stocks such as Constellation Energy and Nvidia, both experiencing double-digit percentage declines [3] Group 2 - Major tech companies, including Apple, Microsoft, and Meta Platforms, are scheduled to report quarterly results soon, and the current market volatility may impact the questions their executives will face [4] - The CNBC's Magnificent 7 index, which includes Meta and Nvidia, was recently down about 3%, reflecting the broader market concerns [4]

Group 1: Market Overview - The new Trump administration is expected to negatively impact returns for investors who rely on index funds like the SPDR S&P 500 ETF Trust (SPY), indicating a shift towards a stock picker's market [1][2] - SPY holders are at a disadvantage as they cannot adjust their holdings in response to market changes, leading to potential losses as underperforming stocks offset gains [2] Group 2: Food Stocks - The appointment of RFK Jr. as head of the Health and Human Services department is seen as a negative for food stocks such as General Mills (GIS) and Kraft-Heinz Co. (KHC), which have already experienced declines since Election Day [4][5] - General Mills has shown a slowdown in dividend growth, with only a penny increase last year, while McDonald's (MCD) has a high dividend payout ratio of 73% of free cash flow, raising concerns about future growth [5][6] - Kraft-Heinz's high dividend yield of 5.6% is misleading due to a significant drop in stock price over the past decade, and its dividend cut in early 2019 further exemplifies the risks associated with its dividend policy [6][7] Group 3: Companies with China Exposure - Companies with significant exposure to China, such as Mattel (MAT) and Hasbro (HAS), are expected to face challenges due to impending higher tariffs and demographic shifts leading to fewer births [9][10] - Mattel has been reducing its reliance on China, but still sources about 50% of its products from there, while Hasbro aims to cut its Chinese sourcing from 40% to 20% over four years [11][12] - Hasbro's consumer-products segment, which generates 67% of its sales, has seen a 10% drop in revenue, indicating potential struggles ahead [12][13] Group 4: Vail Resorts - Vail Resorts (MTN) has a high dividend yield of 4.8%, but its payout ratio has exceeded 100% of free cash flow, raising sustainability concerns [15][16] - Management's decision to deny wage increases to ski patrollers led to negative publicity and a decline in share price, further eroding investor confidence [17][18]