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General Mills (NYSE:GIS) unveils its next round of earnings this Wednesday, March 24. Get prepared with Benzinga's ultimate preview for General Mills's Q3 earnings.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Wall Street analysts see General Mills reporting earnings of $0.84 per share on revenue of $4.45 billion. In the same quarter last year, General Mills reported earnings per share of $0.77 on revenue of $4.18 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 9.09%. Sales would be up 6.46% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
Shares of General Mills were trading at $61.63 as of March 22. Over the last 52-week period, shares are up 29.8%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. General Mills is scheduled to hold the call at 09:00:00 ET and can be accessed here.
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