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General Mills (GIS) Gears Up for Q4 Earnings: Things to Note
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General Mills, Inc. (GIS - Free Report) is likely to register top-line growth when it reports fourth-quarter fiscal 2023 earnings on Jun 28. The Zacks Consensus Estimate for revenues is pegged at $5,172 million, suggesting a rise of 5.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at $1.05 per share. The projection indicates a decline of 6.3% from the figure reported in the year-ago period quarter. General Mills has a trailing four-quarter earnings surprise of 8.1%, on average.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills’ Accelerate strategy has been aiding growth for a while. The strategy helps the company make the choices of how to win and where to play to boost profitability while enhancing shareholder returns in the long run.
Under how to win, General Mills is focused on brand building, undertaking innovations, unleashing scale and maintaining business strength. The where to play principle is outlined to enhance the company’s capabilities to generate profitability through geographic and product prioritization, along with portfolio restructuring. This includes prioritizing investments, investing in five Global Platforms, driving growth in Local Gem brands and reshaping the portfolio.
General Mills has been seeing strength in its Pet segment, backed by enhanced customer service, improved brand-building and other commercial activities. The higher pet population and more humanization and premiumization of pet food have been acting as tailwinds for the company’s pet food category.
Apart from this, the company’s Holistic Margin Management and Strategic Revenue Management initiatives to counter inflation have been working well. On its third-quarter earnings call, management stated that it still expects the biggest factors impacting its show in fiscal 2023 are likely to be consumers’ economic status, cost inflation and the severity and frequency of supply-chain bottlenecks.
For fiscal 2023, management expects input cost inflation of 14-15% percent of the total cost of goods sold. It also expects moderately reduced supply-chain hurdles while anticipating greater investments in brand-building and other growth-driving initiatives compared with the year-ago period. These aspects may have affected profits in the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
General Mills has an Earnings ESP of +1.91% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
McCormick & Company (MKC - Free Report) currently has an Earnings ESP of +4.43% and a Zacks Rank #2. The company’s top line is expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for McCormick’s quarterly revenues is pegged at $1.7 billion, which implies a rise of 8.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 57 cents, which indicates 18.8% growth from the year-ago period figure. MKC delivered an earnings surprise of 20.4% in the last reported quarter.
Kimberly-Clark (KMB - Free Report) currently has an Earnings ESP of +6.73% and a Zacks Rank of 3. KMB is expected to register a top-and-bottom-line increase when it reports second-quarter 2023 numbers.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at roughly $5.1 billion, calling for growth of 0.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.39 suggests a rise of 3.7% from the figure reported in the year-ago fiscal quarter. KMB has a trailing four-quarter earnings surprise of 5.1%, on average.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +5.18% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.4 billion, which implies a rise of 7.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 79 cents, which indicates nearly 4% growth from the year-ago period figure. CHD has a trailing four-quarter earnings surprise of 9.8%, on average.
Image: Bigstock
General Mills (GIS) Gears Up for Q4 Earnings: Things to Note
General Mills, Inc. (GIS - Free Report) is likely to register top-line growth when it reports fourth-quarter fiscal 2023 earnings on Jun 28. The Zacks Consensus Estimate for revenues is pegged at $5,172 million, suggesting a rise of 5.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at $1.05 per share. The projection indicates a decline of 6.3% from the figure reported in the year-ago period quarter. General Mills has a trailing four-quarter earnings surprise of 8.1%, on average.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote
Factors to Consider
General Mills’ Accelerate strategy has been aiding growth for a while. The strategy helps the company make the choices of how to win and where to play to boost profitability while enhancing shareholder returns in the long run.
Under how to win, General Mills is focused on brand building, undertaking innovations, unleashing scale and maintaining business strength. The where to play principle is outlined to enhance the company’s capabilities to generate profitability through geographic and product prioritization, along with portfolio restructuring. This includes prioritizing investments, investing in five Global Platforms, driving growth in Local Gem brands and reshaping the portfolio.
General Mills has been seeing strength in its Pet segment, backed by enhanced customer service, improved brand-building and other commercial activities. The higher pet population and more humanization and premiumization of pet food have been acting as tailwinds for the company’s pet food category.
Apart from this, the company’s Holistic Margin Management and Strategic Revenue Management initiatives to counter inflation have been working well. On its third-quarter earnings call, management stated that it still expects the biggest factors impacting its show in fiscal 2023 are likely to be consumers’ economic status, cost inflation and the severity and frequency of supply-chain bottlenecks.
For fiscal 2023, management expects input cost inflation of 14-15% percent of the total cost of goods sold. It also expects moderately reduced supply-chain hurdles while anticipating greater investments in brand-building and other growth-driving initiatives compared with the year-ago period. These aspects may have affected profits in the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
General Mills has an Earnings ESP of +1.91% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
McCormick & Company (MKC - Free Report) currently has an Earnings ESP of +4.43% and a Zacks Rank #2. The company’s top line is expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for McCormick’s quarterly revenues is pegged at $1.7 billion, which implies a rise of 8.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 57 cents, which indicates 18.8% growth from the year-ago period figure. MKC delivered an earnings surprise of 20.4% in the last reported quarter.
Kimberly-Clark (KMB - Free Report) currently has an Earnings ESP of +6.73% and a Zacks Rank of 3. KMB is expected to register a top-and-bottom-line increase when it reports second-quarter 2023 numbers.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at roughly $5.1 billion, calling for growth of 0.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.39 suggests a rise of 3.7% from the figure reported in the year-ago fiscal quarter. KMB has a trailing four-quarter earnings surprise of 5.1%, on average.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +5.18% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.4 billion, which implies a rise of 7.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 79 cents, which indicates nearly 4% growth from the year-ago period figure. CHD has a trailing four-quarter earnings surprise of 9.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.