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Is General Mills Positioned for a Beat in Q1 Earnings Release?
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Key Takeaways
GIS' innovation and renovation efforts are likely to support brand relevance and consumer engagement.
Premium offerings across key brands are intended to support positive price/mix and enter new growth spaces.
General Mills' pet brands may benefit from higher investment, innovation and broader distribution.
General Mills, Inc. (GIS - Free Report) is likely to witness a top-and bottom-line decline when it reports first-quarter fiscal 2027 earnings on Sept. 8. The Zacks Consensus Estimate for revenues is pegged at $4.3 billion, indicating a decrease of 3.8% from the year-ago reported number.
The consensus mark for earnings has remained unchanged over the past 30 days at 72 cents a share, which suggests a decline of 16.3% from the figure recorded in the year-ago period. GIS has a trailing four-quarter surprise of 4.1%, on average.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills’ fiscal first-quarter performance is likely to have benefited from its sharper focus on product innovation and renovation following the completion of its base-price investment actions. Management has prioritized offerings tied to consumer demand spaces such as protein, fiber, bold flavors, indulgence and pet humanization. These initiatives, along with refreshed packaging and brand communications, are likely to have helped improve brand relevance and supported consumer engagement.
Within North America Retail, innovation across key brands such as Cheerios, Nature Valley, Annie’s and Old El Paso is likely to have supported performance. The company is also expanding distribution for La Tiara and Ghost while launching Wanchai Ferry frozen dumplings in club stores during the summer. On its last earnings call, management noted that these premium offerings are intended to support positive price/mix as the business enters new growth spaces.
North America Pet is likely to have benefited from continued momentum in Tastefuls and Tiki Cat, supported by higher brand investment, innovation and broader distribution. Efforts to strengthen Blue Buffalo’s Life Protection Formula and improve Love Made Fresh availability are also likely to have helped. On the margin front, HMM productivity, Strategic Revenue Management, premium innovation and price-pack architecture may have provided some support, although cost savings were expected to build gradually through the year.
However, a still-pressured consumer environment and subdued category growth are likely to have weighed on volumes. Management specifically indicated that first-quarter results are expected to fall below full-year guidance ranges, reflecting shipment-timing headwinds in North America Retail and North America Pet, as well as the timing of cost-savings realization.
In Pet, customer inventory management and an unfavorable customer mix are also expected to cause organic sales growth to lag retail sales growth in the quarter. Our model suggests organic sales declines of 4% and 4.8% for the North America Retail and North America Pet segments, respectively, in the first quarter.
Earnings Whispers for GIS
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 odds of an earnings beat, which is exactly the case here.
General Mills currently carries a Zacks Rank #3 and has an Earnings ESP of +1.47%. 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 some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Colgate-Palmolive Company (CL - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $5.3 billion, indicating an approximately 4% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Colgate-Palmolive’s earnings is pegged at 92 cents per share, implying 1.1% growth from the year-ago quarter. CL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
Philip Morris International Inc. (PM - Free Report) currently has an Earnings ESP of +3.41% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $11.3 billion, which suggests 4.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s EPS is pegged at $2.26, which calls for a 0.9% increase from the year-ago period figure. PM delivered a trailing four-quarter earnings surprise of 6%, on average.
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.57% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $12.9 billion, which indicates an improvement of about 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s upcoming quarter’s EPS is pegged at 87 cents, which calls for 6.1% growth from the figure reported in the prior-year quarter. KO delivered a trailing four-quarter earnings surprise of 4.6%, on average.
View the Zacks #1 Rank List
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Is General Mills Positioned for a Beat in Q1 Earnings Release?
Key Takeaways
General Mills, Inc. (GIS - Free Report) is likely to witness a top-and bottom-line decline when it reports first-quarter fiscal 2027 earnings on Sept. 8. The Zacks Consensus Estimate for revenues is pegged at $4.3 billion, indicating a decrease of 3.8% from the year-ago reported number.
The consensus mark for earnings has remained unchanged over the past 30 days at 72 cents a share, which suggests a decline of 16.3% from the figure recorded in the year-ago period. GIS has a trailing four-quarter surprise of 4.1%, on average.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote
Factors Likely to Influence GIS’ Upcoming Results
General Mills’ fiscal first-quarter performance is likely to have benefited from its sharper focus on product innovation and renovation following the completion of its base-price investment actions. Management has prioritized offerings tied to consumer demand spaces such as protein, fiber, bold flavors, indulgence and pet humanization. These initiatives, along with refreshed packaging and brand communications, are likely to have helped improve brand relevance and supported consumer engagement.
Within North America Retail, innovation across key brands such as Cheerios, Nature Valley, Annie’s and Old El Paso is likely to have supported performance. The company is also expanding distribution for La Tiara and Ghost while launching Wanchai Ferry frozen dumplings in club stores during the summer. On its last earnings call, management noted that these premium offerings are intended to support positive price/mix as the business enters new growth spaces.
North America Pet is likely to have benefited from continued momentum in Tastefuls and Tiki Cat, supported by higher brand investment, innovation and broader distribution. Efforts to strengthen Blue Buffalo’s Life Protection Formula and improve Love Made Fresh availability are also likely to have helped. On the margin front, HMM productivity, Strategic Revenue Management, premium innovation and price-pack architecture may have provided some support, although cost savings were expected to build gradually through the year.
However, a still-pressured consumer environment and subdued category growth are likely to have weighed on volumes. Management specifically indicated that first-quarter results are expected to fall below full-year guidance ranges, reflecting shipment-timing headwinds in North America Retail and North America Pet, as well as the timing of cost-savings realization.
In Pet, customer inventory management and an unfavorable customer mix are also expected to cause organic sales growth to lag retail sales growth in the quarter. Our model suggests organic sales declines of 4% and 4.8% for the North America Retail and North America Pet segments, respectively, in the first quarter.
Earnings Whispers for GIS
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 odds of an earnings beat, which is exactly the case here.
General Mills currently carries a Zacks Rank #3 and has an Earnings ESP of +1.47%. 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 some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Colgate-Palmolive Company (CL - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $5.3 billion, indicating an approximately 4% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Colgate-Palmolive’s earnings is pegged at 92 cents per share, implying 1.1% growth from the year-ago quarter. CL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
Philip Morris International Inc. (PM - Free Report) currently has an Earnings ESP of +3.41% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $11.3 billion, which suggests 4.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s EPS is pegged at $2.26, which calls for a 0.9% increase from the year-ago period figure. PM delivered a trailing four-quarter earnings surprise of 6%, on average.
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.57% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $12.9 billion, which indicates an improvement of about 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s upcoming quarter’s EPS is pegged at 87 cents, which calls for 6.1% growth from the figure reported in the prior-year quarter. KO delivered a trailing four-quarter earnings surprise of 4.6%, on average.