General Mills Gears Up for Q3 Earnings: Here's What You Should Know

Core Viewpoint - General Mills, Inc. (GIS) is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2025, with revenues estimated at nearly $5 billion, reflecting a 2.8% decrease year-over-year, and earnings per share projected at 95 cents, indicating an 18.8% decline from the previous year [1][3]. Financial Performance - The Zacks Consensus Estimate for GIS's revenues is approximately $5 billion, which represents a 2.8% decrease from the same quarter last year [1]. - The consensus estimate for earnings per share has decreased by one cent in the past week to 95 cents, marking an 18.8% decline compared to the prior year's quarter [1]. - GIS has a trailing four-quarter earnings surprise average of 7.8% [1]. Cost Pressures - GIS is experiencing rising selling, general and administrative (SG&A) expenses, primarily due to increased media investments, with plans to boost media spending by over 40% for the fiscal third quarter [3]. - The company anticipates input cost inflation to account for 4% of the cost of goods sold in fiscal 2025, which is likely to impact its fiscal third quarter results [3]. - Despite implementing cost-control measures through its Holistic Margin Management strategy, escalating costs remain a significant concern, with projections indicating an 80-basis-point decline in adjusted gross margin to 33.2% for the upcoming quarter [4]. Earnings Outlook - The current model does not predict an earnings beat for GIS, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of -0.47% [5].