Zacks Research Forecasts Reduced Earnings for General Mills

Key Points

• Zacks Research cut General Mills’ Q1 2027 EPS forecast to $0.73 from $0.82, and also lowered several longer-term earnings estimates, signaling a more cautious view on the company’s profit trajectory.
• General Mills’ latest quarterly results beat expectations, with EPS of $0.95 versus the $0.80 consensus and revenue of $4.61 billion, slightly above estimates. The company also reaffirmed FY2027 guidance of $3.00 to $3.20 per share.
• Sentiment on GIS remains mixed: analysts’ average rating is “Reduce” with a $39.16 price target, while the stock also offers a quarterly dividend of $0.61, equal to a 6.6% annualized yield at current levels.

General Mills, Inc. (NYSE:GIS - Free Report) - Zacks Research decreased their Q1 2027 earnings per share (EPS) estimates for General Mills in a report released on Wednesday, July 15th. Zacks Research analyst Team now anticipates that the company will earn $0.73 per share for the quarter, down from their previous forecast of $0.82. The consensus estimate for General Mills' current full-year earnings is $3.07 per share. Zacks Research also issued estimates for General Mills' Q2 2027 earnings at $0.98 EPS, Q3 2027 earnings at $0.64 EPS, Q4 2027 earnings at $0.69 EPS, FY2027 earnings at $3.04 EPS, Q1 2028 earnings at $0.80 EPS, Q2 2028 earnings at $0.99 EPS, Q3 2028 earnings at $0.65 EPS, Q4 2028 earnings at $0.74 EPS, FY2028 earnings at $3.18 EPS and FY2029 earnings at $3.26 EPS.

General Mills (NYSE:GIS - Get Free Report) last released its quarterly earnings data on Wednesday, July 1st. The company reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.15. General Mills had a positive return on equity of 21.37% and a negative net margin of 0.48%.The business had revenue of $4.61 billion for the quarter, compared to analysts' expectations of $4.59 billion. During the same quarter in the previous year, the business posted $0.53 EPS. General Mills's revenue for the quarter was up 1.2% on a year-over-year basis. General Mills has set its FY 2027 guidance at 3.000-3.200 EPS.

A number of other research analysts have also weighed in on GIS. BTIG Research assumed coverage on shares of General Mills in a research note on Monday, April 13th. They issued a "neutral" rating on the stock. BNP Paribas Exane increased their price objective on shares of General Mills from $37.00 to $38.00 and gave the stock a "neutral" rating in a research report on Thursday, July 2nd. Piper Sandler dropped their price objective on shares of General Mills from $45.00 to $41.00 and set an "overweight" rating on the stock in a report on Wednesday, May 13th. UBS Group set a $33.00 price objective on shares of General Mills in a research report on Monday, July 6th. Finally, Stifel Nicolaus reduced their target price on shares of General Mills from $44.00 to $40.00 and set a "buy" rating for the company in a research note on Tuesday, April 21st. Four equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and seven have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $39.16.

General Mills Price Performance

NYSE GIS opened at $37.19 on Thursday. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.40 and a current ratio of 0.68. The stock has a market cap of $19.85 billion, a price-to-earnings ratio of -206.62 and a beta of -0.03. The business has a 50 day simple moving average of $34.53 and a 200 day simple moving average of $39.13. General Mills has a 52-week low of $31.75 and a 52-week high of $51.68.

Institutional Investors Weigh In On General Mills

A number of institutional investors and hedge funds have recently modified their holdings of the company. Vermillion & White Wealth Management Group LLC acquired a new position in General Mills during the third quarter worth approximately $25,000. Reflection Asset Management acquired a new stake in shares of General Mills in the fourth quarter valued at approximately $25,000. Nalls Sherbakoff Group LLC bought a new position in shares of General Mills during the 4th quarter worth approximately $26,000. Brown Shipley& Co Ltd bought a new position in shares of General Mills during the 1st quarter worth approximately $26,000. Finally, Bruce G. Allen Investments LLC increased its holdings in shares of General Mills by 139.8% during the 4th quarter. Bruce G. Allen Investments LLC now owns 578 shares of the company's stock worth $27,000 after acquiring an additional 337 shares during the last quarter. 75.71% of the stock is owned by institutional investors.

Insider Buying and Selling at General Mills

In related news, insider Jacqueline Williams-Roll sold 10,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $34.27, for a total value of $342,700.00. Following the completion of the transaction, the insider directly owned 86,002 shares of the company's stock, valued at approximately $2,947,288.54. This trade represents a 10.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Ricardo Fernandez sold 7,995 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $34.50, for a total transaction of $275,827.50. Following the transaction, the insider owned 62,283 shares in the company, valued at approximately $2,148,763.50. The trade was a 11.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.30% of the stock is currently owned by company insiders.

General Mills Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be issued a $0.61 dividend. This represents a $2.44 annualized dividend and a dividend yield of 6.6%. The ex-dividend date of this dividend is Friday, July 10th. General Mills's dividend payout ratio is presently -1,355.56%.

General Mills News Roundup

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

• Positive Sentiment: Zacks Research raised its Q4 2028 EPS estimate for General Mills to $0.74 from $0.67, signaling improved profit expectations. General Mills estimate update
• Positive Sentiment: The analyst also boosted FY2028, FY2029, and Q4 2027 earnings estimates, which may support sentiment around longer-term earnings growth. General Mills estimate update
• Positive Sentiment: General Mills announced a collaboration with ADM and Walmart to expand regenerative agriculture across 40,000 Midwest wheat acres, reinforcing sustainability and supply-chain initiatives. General Mills, ADM, Walmart Partner to Accelerate Regenerative Agriculture Across 40,000 Midwest Wheat Acres
• Neutral Sentiment: General Mills and Box Tops for Education launched a back-to-school campaign tied to the show "Saved by the Bell," a branding move that is likely less material to the stock than earnings revisions. General Mills and Box Tops for Education Reunite Saved by the Bell Cast to Celebrate 30 Years of Giving Back to Schools
• Negative Sentiment: Zacks Research lowered several estimates, including FY2027 to $3.04 from $3.26, FY2028 to $3.18 from $3.34, Q1 2027 to $0.73 from $0.82, and Q2 2028 to $0.99 from $1.11, which may limit enthusiasm. General Mills estimate update

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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