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General Mills (GIS) Q2 Earnings Coming Up: Factors to Note
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General Mills, Inc. (GIS - Free Report) is likely to register top-line and bottom-line growth when it reports second-quarter fiscal 2024 earnings on Dec 20. The Zacks Consensus Estimate for revenues is pegged at $5.4 billion, suggesting an increase of 2.6% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.16 per share. This indicates a rise of 5.5% from the year-ago quarter’s reported figure. GIS has a trailing four-quarter earnings surprise of 4.5%, on average.
Factors to Note
General Mills’ commitment toward its three priorities as part of its Accelerate strategy is likely to have aided in the quarter under review. These include competing efficiently through brand building and innovation; enhancing the supply chain by boosting Holistic Margin Management cost savings and curtailing costs and undertaking efficient capital allocation; rewarding shareholders and staying committed to reshaping the portfolio via strategic acquisitions and divestitures.
General Mills, Inc. Price, Consensus and EPS Surprise
The company has been gaining from favorable net price realization. For fiscal 2024, management expects organic net sales growth to be driven by robust marketing, innovation and in-store support. Also, gains from net price realization through the company’s Strategic Revenue Management initiative are likely to have aided. These upsides bode well for the quarter under review. Our model suggests price/mix to be up 3.8% in the second quarter.
Notably, General Mills’ North America Foodservice business has been performing well, gaining from high consumer traffic in hospitality, travel, education, and other non-restaurant away-from-home food channels. We expect segment sales to increase 3.5% year over year in the to-be-reported quarter.
That said, the company’s Pet segment retail sales in the first quarter of fiscal 2024 were somewhat affected by pet parents’ shift toward value products and channels, along with smaller pack sizes. Additionally, the company has been witnessing challenges in the wet food and treats categories, with pet parents spending more time at work or away from home. Management expects the difficult category dynamics to persist in the Pet segment throughout fiscal 2024 as it does not see any major change in economic viewpoint for pet parents in the near term. This raises concerns about the quarter under review as well.
Apart from this, General Mills input cost inflation has been moderating. On its first-quarter earnings call, management stated that the biggest factors impacting its performance in fiscal 2024 are likely to be consumers’ economic status, the moderating rate of cost inflation and the rising stability of supply-chain status. However, continued brand investments may have escalated the SG&A expenses in the second quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 odds of an earnings beat, which is the case here.
General Mills has an Earnings ESP of -0.86% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these also have the correct combination to beat on earnings this time:
Lamb Weston (LW - Free Report) has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is likely to witness top-and-bottom-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Lamb Weston’s quarterly revenues is pegged at $1.7 billion, which suggests a rise of 32.6% 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 Lamb Weston’s quarterly EPS has remained unchanged in the past 30 days at $1.40, which suggests an increase of 9.4% from the year-ago quarter’s level. LW has a trailing four-quarter earnings surprise of 46.2%, on average.
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +1.86% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.2 billion, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 76 cents suggests an increase of 4.1% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.
Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.95% and a Zacks Rank of 3. The company is likely to register top-line and bottom-line increases when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $4.9 billion, indicating a rise of 5.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Colgate’s quarterly earnings of 85 cents suggests an increase of 10.4% from the year-ago quarter’s levels. CL has a trailing four-quarter earnings surprise of 3.6%, on average.
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General Mills (GIS) Q2 Earnings Coming Up: Factors to Note
General Mills, Inc. (GIS - Free Report) is likely to register top-line and bottom-line growth when it reports second-quarter fiscal 2024 earnings on Dec 20. The Zacks Consensus Estimate for revenues is pegged at $5.4 billion, suggesting an increase of 2.6% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.16 per share. This indicates a rise of 5.5% from the year-ago quarter’s reported figure. GIS has a trailing four-quarter earnings surprise of 4.5%, on average.
Factors to Note
General Mills’ commitment toward its three priorities as part of its Accelerate strategy is likely to have aided in the quarter under review. These include competing efficiently through brand building and innovation; enhancing the supply chain by boosting Holistic Margin Management cost savings and curtailing costs and undertaking efficient capital allocation; rewarding shareholders and staying committed to reshaping the portfolio via strategic acquisitions and divestitures.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote
The company has been gaining from favorable net price realization. For fiscal 2024, management expects organic net sales growth to be driven by robust marketing, innovation and in-store support. Also, gains from net price realization through the company’s Strategic Revenue Management initiative are likely to have aided. These upsides bode well for the quarter under review. Our model suggests price/mix to be up 3.8% in the second quarter.
Notably, General Mills’ North America Foodservice business has been performing well, gaining from high consumer traffic in hospitality, travel, education, and other non-restaurant away-from-home food channels. We expect segment sales to increase 3.5% year over year in the to-be-reported quarter.
That said, the company’s Pet segment retail sales in the first quarter of fiscal 2024 were somewhat affected by pet parents’ shift toward value products and channels, along with smaller pack sizes. Additionally, the company has been witnessing challenges in the wet food and treats categories, with pet parents spending more time at work or away from home. Management expects the difficult category dynamics to persist in the Pet segment throughout fiscal 2024 as it does not see any major change in economic viewpoint for pet parents in the near term. This raises concerns about the quarter under review as well.
Apart from this, General Mills input cost inflation has been moderating. On its first-quarter earnings call, management stated that the biggest factors impacting its performance in fiscal 2024 are likely to be consumers’ economic status, the moderating rate of cost inflation and the rising stability of supply-chain status. However, continued brand investments may have escalated the SG&A expenses in the second quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 odds of an earnings beat, which is the case here.
General Mills has an Earnings ESP of -0.86% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these also have the correct combination to beat on earnings this time:
Lamb Weston (LW - Free Report) has an Earnings ESP of +0.71% and a Zacks Rank #2. The company is likely to witness top-and-bottom-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Lamb Weston’s quarterly revenues is pegged at $1.7 billion, which suggests a rise of 32.6% 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 Lamb Weston’s quarterly EPS has remained unchanged in the past 30 days at $1.40, which suggests an increase of 9.4% from the year-ago quarter’s level. LW has a trailing four-quarter earnings surprise of 46.2%, on average.
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +1.86% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.2 billion, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 76 cents suggests an increase of 4.1% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.
Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.95% and a Zacks Rank of 3. The company is likely to register top-line and bottom-line increases when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $4.9 billion, indicating a rise of 5.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Colgate’s quarterly earnings of 85 cents suggests an increase of 10.4% from the year-ago quarter’s levels. CL has a trailing four-quarter earnings surprise of 3.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.