General Mills (NYSE:GIS) Shares Gap Up on Strong Earnings

Key Points

• General Mills shares gapped up after the company reported better-than-expected earnings, opening at $37.72 versus the prior close of $34.80.
• The company posted Q4 adjusted EPS of $0.95, beating estimates of about $0.82, while revenue of $4.61 billion also came in slightly above forecasts.
• Despite the earnings beat, investors are still weighing mixed demand trends and cautious guidance, with North American retail sales weak and fiscal 2027 EPS guidance of $3.00-$3.20 only roughly in line with expectations.

Shares of General Mills, Inc. (NYSE:GIS - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $34.80, but opened at $37.72. General Mills shares last traded at $37.8120, with a volume of 4,436,619 shares.

The company reported $0.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.13. General Mills had a return on equity of 19.19% and a net margin of 12.05%.The company had revenue of $4.61 billion for the quarter, compared to analyst estimates of $4.59 billion. During the same period in the prior year, the company posted $0.53 EPS. The firm's quarterly revenue was up 1.2% compared to the same quarter last year. General Mills has set its FY 2027 guidance at 3.000-3.200 EPS.

General Mills News Roundup

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: General Mills reported Q4 adjusted EPS of $0.95, well above the $0.80 consensus, with revenue of $4.61 billion also slightly ahead of estimates. The earnings beat is the main driver behind the stock’s gains. General Mills (GIS) Stock Surges 4% on Strong Q4 Earnings Beat
• Positive Sentiment: The company said it is focusing on organic sales growth, cost cuts, and product expansion to win back consumers, which could support margins and stabilize results over time. General Mills Stock Rises on Earnings and Says It‘s Focusing on Organic Sales Growth
• Neutral Sentiment: General Mills guided fiscal 2027 EPS to $3.00-$3.20 versus a $3.13 consensus, which suggests expectations are roughly balanced rather than a major upside surprise. General Mills earnings report and guidance
• Neutral Sentiment: Investors are also watching signs that North America retail sales remain weak even as international sales improve, highlighting a mixed demand backdrop. General Mills in charts: North America Retail sales continue to fall as international grows Y/Y
• Negative Sentiment: The company swung to a quarterly loss on a GAAP basis, underscoring continued pressure from cautious consumers and a challenging packaged-foods environment. General Mills Swings to Loss, Works to Win Back ‘Challenging' Consumers

Wall Street Analysts Forecast Growth

A number of research firms recently commented on GIS. Mizuho lowered their target price on shares of General Mills from $47.00 to $39.00 and set a "neutral" rating for the company in a research note on Thursday, March 19th. UBS Group decreased their price target on shares of General Mills from $35.00 to $30.00 and set a "sell" rating for the company in a report on Tuesday, June 2nd. JPMorgan Chase & Co. lowered their price objective on shares of General Mills from $36.00 to $31.00 and set an "underweight" rating for the company in a research note on Wednesday, June 3rd. Sanford C. Bernstein lowered shares of General Mills from a "market perform" rating to an "underperform" rating and set a $31.00 price objective on the stock. in a report on Wednesday, June 3rd. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of General Mills in a research report on Tuesday, June 16th. Four equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and seven have assigned a Sell rating to the company. Based on data from MarketBeat.com, General Mills has a consensus rating of "Reduce" and a consensus target price of $39.06.

Insider Activity at General Mills

In other General Mills news, insider Ricardo Fernandez sold 7,995 shares of General Mills stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $34.50, for a total transaction of $275,827.50. Following the completion of the sale, the insider directly owned 62,283 shares in the company, valued at approximately $2,148,763.50. The trade was a 11.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Jacqueline Williams-Roll sold 10,000 shares of the company's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $34.27, for a total transaction of $342,700.00. Following the completion of the sale, the insider directly owned 86,002 shares in the company, valued at $2,947,288.54. This trade represents a 10.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Smith Moore & CO. raised its stake in shares of General Mills by 2.6% during the 3rd quarter. Smith Moore & CO. now owns 8,785 shares of the company's stock valued at $443,000 after buying an additional 225 shares during the last quarter. Schwarz Dygos Wheeler Investment Advisors LLC boosted its stake in shares of General Mills by 1.9% in the fourth quarter. Schwarz Dygos Wheeler Investment Advisors LLC now owns 12,153 shares of the company's stock worth $565,000 after buying an additional 225 shares during the last quarter. Allegheny Financial Group grew its holdings in General Mills by 4.8% during the fourth quarter. Allegheny Financial Group now owns 4,904 shares of the company's stock worth $228,000 after acquiring an additional 226 shares during the period. Stonebridge Capital Advisors LLC grew its holdings in General Mills by 0.7% during the second quarter. Stonebridge Capital Advisors LLC now owns 32,843 shares of the company's stock worth $1,702,000 after acquiring an additional 226 shares during the period. Finally, Robertson Stephens Wealth Management LLC raised its position in General Mills by 3.7% during the fourth quarter. Robertson Stephens Wealth Management LLC now owns 6,879 shares of the company's stock valued at $320,000 after acquiring an additional 247 shares in the last quarter. 75.71% of the stock is currently owned by institutional investors and hedge funds.

General Mills Stock Performance

The company has a market capitalization of $20.19 billion, a PE ratio of 9.25 and a beta of -0.03. The firm has a 50-day moving average of $34.13 and a two-hundred day moving average of $39.94. The company has a quick ratio of 0.36, a current ratio of 0.56 and a debt-to-equity ratio of 1.17.

About General Mills

General Mills, Inc NYSE: GIS is a multinational consumer foods company that develops, manufactures and markets a broad portfolio of branded food products. Its product categories include ready-to-eat and hot cereals, baking mixes and ingredients, snacks and bars, refrigerated and frozen doughs, yogurt and other dairy products, and a variety of shelf-stable meals and meal components. The company's portfolio features widely recognized consumer brands across grocery store, mass channel and foodservice outlets.

Founded in the early 20th century and incorporated under its current name in 1928, General Mills has grown through both internal brand development and strategic expansion to become a global food company.

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