General Mills (NYSE:GIS) shares tanked by nearly 5% in the premarket session today after the branded consumer foods provider reported a mixed set of fourth-quarter numbers.
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A Dismal Performance
During the quarter, revenue declined by 6% year-over-year to $4.71 billion, lagging expectations by $140 million. The company’s EPS of $1.01, on the other hand, outpaced consensus by $0.02. Furthermore, GIS’s organic net sales declined by nearly 6% in Q4.
In sync, the company’s operating profit contracted by 5% to $779 million. This disappointing performance is due to unfavorable net price realization, product mix, and lower pound volumes. Still, the company managed to improve its gross margin by 140 basis points thanks to its focus on driving cost efficiency.
Looking Ahead…
For Fiscal Year 2025, GIS is maintaining its sights on accelerating its organic net sales growth and volume gains. The company anticipates organic net sales growth to be flat to 1% for the year. EPS growth for the year is expected to hover in the range of -1% to 1%.
Separately, General Mills has increased its quarterly dividend by 2% to $0.60 per share. The GIS dividend is payable on August 1 to investors of record on July 10.
Is GIS Stock a Buy, Sell, or Hold?
Today’s price decline comes on top of a nearly 15% drop in General Mills’ share price over the past year. Overall, the Street has a Hold consensus rating on the stock, alongside an average GIS price target of $72.40. However, analysts’ views on the company could see a revision following today’s earnings report.
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