U.S. Markets closed

General Mills stock falls after profit beats but sales come up short

Tomi Kilgore

Shares of General Mills Inc. slumped 3.2% in premarket trading Wednesday, after the branded consumer foods company reported a fiscal fourth-quarter profit that beat expectations but sales that came up short. Net income for the quarter to May 26 rose to $570.2 million, or 94 cents a share, from $354.4 million, or 59 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 83 cents, above the FactSet consensus of 77 cents. Net sales grew 7.0% to $4.16 billion, but was below the FactSet consensus of $4.24 billion. Within its business segments, North America retail sales fell 2% to $2.34 billion, just shy of the FactSet consensus of $2.38 billion, while convenience store and foodservice sales rose 2% to $519 million to top expectations of $515.2 million. For 2020, the company expects organic net sales to rise 1% to 2%. The stock has rallied 38% year to date through Tuesday, while the SPDR Consumer Staples Select Sector ETF has gained 9.0% and the S&P 500 has advanced 16%.