Back to top

Analyst Blog

We expect consumer food giant, General Mills Inc. (GIS - Analyst Report) to beat expectations when it reports third-quarter fiscal 2013 results on Mar 20 before the market opens.

Why a Likely Positive Surprise?

Our proven model shows that General Mills is likely to beat earnings because it has the right combination of 2 key ingredients.

Positive Zacks ESP: Earnings Expected Surprise Prediction (ESP) (Read: Zacks Earnings ESP: A Better Method), the difference between the Most Accurate Estimate of 58 cents and the Zacks Consensus Estimate of 57 cents, stands at +1.75%.

Zacks #3 Rank (Hold): General Mills currently carries a Zacks Rank # 3 (Hold). Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.

The combination of General Mills’ Zacks Rank #3 (Hold) and +1.75% ESP makes us confident of a positive earnings beat on Mar 20.

What is Driving the Better Than Expected Earnings?

Recent strategic acquisitions, better-than-expected sales and profits in the U.S. retail business, increased innovation and brand support, and productivity gains and cost savings are expected to boost earnings for General Mills. However, higher commodity inflation and a higher (than first half) tax rate may prove to be the headwinds.

Other Stocks to Consider

General Mills is not the only bullish firm this earnings season. We also see likely earnings beats coming from the following consumer staples companies:

Kraft Foods Group, Inc.(KRFT - Analyst Report): Earnings ESP of +1.56% and Zacks Rank #2 (Buy).

The Hershey Company (HSY - Analyst Report): Earnings ESP of +4.76% and Zacks Rank #2 (Buy).

The Chefs' Warehouse, Inc. (CHEF - Snapshot Report): Earnings ESP of +7.14% and Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%