General Mills (GIS), the household name behind Cheerios and many other breakfast cereals, is set to release its first quarter of Fiscal 2025 financials on September 18. Wall Street analysts project the company will post Q1 earnings of $1.06 per share, a 2.8% decline year-over-year. Additionally, they expect GIS’s revenue to drop 2.2% from the previous year to $4.79 billion, according to TipRanks data.
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It’s important to highlight that the company has surpassed the consensus EPS estimates for the past nine quarters.
Key Takeaways from TipRanks’ Bulls & Bears Tool
Analysts expect the company’s revenues and earnings to decrease in Q1, signaling softer overall performance in the near term.
According to TipRanks’ Bulls Say, Bears Say tool shown below, bears highlight several challenges for GIS. They argue that the sale of its North American Yogurt business could reduce adjusted EPS by about 3% within a year of closing. Furthermore, lower sales and higher spending are likely to impact the company’s financial health. Bears also point out that GIS has experienced a decline in market share, particularly due to significant losses in its dough products.
Meanwhile, bulls see the portfolio simplification as a major advantage for GIS. They believe the sale of the North American Yogurt business will sharpen the company’s focus, boost growth, and improve profit margins going forward.
Options Traders Forecast 4.14% Stock Move Post-Earnings
TipRanks’ Options tool offers a quick way to gauge what options traders anticipate from the stock following its earnings report. The expected earnings move is calculated using the at-the-money straddle of the options set to expire closest to the announcement. While this may sound complex, the tool handles the calculations for you.
Currently, it indicates that options traders are predicting a 4.14% swing in either direction.
Is GIS Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on GIS stock based on two Buys and 13 Holds assigned in the past three months, as indicated by the graphic below. After a 15.7% year-to-date increase, the average GIS price target of $69.21 per share implies a 6.11% downside potential.
