General Mills (GIS) Surpasses Q2 Earnings and Revenue Estimates

Core Insights - General Mills reported quarterly earnings of $1.1 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, but down from $1.4 per share a year ago [1] - The company achieved an earnings surprise of +7.84% for the quarter, having also surpassed consensus EPS estimates in the previous four quarters [2] - Revenues for the quarter were $4.86 billion, surpassing the Zacks Consensus Estimate by 1.89%, but down from $5.24 billion year-over-year [3] Earnings Performance - The earnings surprise of +7.84% indicates strong performance relative to expectations, with a previous quarter surprise of +6.17% [2] - General Mills has consistently exceeded consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] Revenue Analysis - The reported revenue of $4.86 billion reflects a decline from the previous year's revenue of $5.24 billion, although it still surpassed expectations [3] - The company has topped consensus revenue estimates two times in the last four quarters, showcasing some resilience in revenue generation [3] Stock Performance and Outlook - General Mills shares have declined approximately 26.3% year-to-date, contrasting with the S&P 500's gain of 15.6%, indicating underperformance in the market [4] - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for earnings revisions [4][5] Earnings Estimates and Industry Context - Current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $4.59 billion, with an annual estimate of $3.64 on revenues of $18.57 billion [8] - The Zacks Industry Rank places the Food - Miscellaneous sector in the bottom 21% of over 250 industries, suggesting potential challenges ahead for General Mills [9] Competitor Insights - Conagra Brands, a competitor in the same industry, is expected to report quarterly earnings of $0.44 per share, reflecting a year-over-year decline of -37.1% [10] - Conagra's anticipated revenues are projected at $3 billion, down 6.2% from the previous year, indicating similar pressures within the industry [11]