General Mills (GIS) Q1 Earnings Coming Up: Things to Note
General Mills, Inc. GIS is likely to register a top-line decline when it reports first-quarter fiscal 2023 earnings on Sep 21, 2022. The Zacks Consensus Estimate for quarterly revenues is pegged at $4,091 million, suggesting a decrease of 9.9% from the figure reported in the prior-year quarter.
Nevertheless, General Mills’ bottom line is likely to grow year over year. The Zacks Consensus Estimate for quarterly earnings has moved up by a couple of cents in the last seven days to $1.00 per share. The projection indicates a growth of 1% from the year-ago quarter’s reported figure.
We expect fiscal first-quarter net revenues to be up 0.3% year over year to $4,553.6 million and the bottom line to improve almost 1% to $1.00 a share.
The manufacturer and marketer of branded consumer food products has a trailing four-quarter earnings surprise of 6.5%, on average. In the last reported quarter, General Mills delivered an earnings surprise of 10.9%.
General Mills, Inc. Price and EPS Surprise
General Mills, Inc. price-eps-surprise | General Mills, Inc. Quote
Things To Note
General Mills is grappling with escalated input cost inflation, which has been marring its performance for a while. The rise in the cost of goods sold, mainly due to ingredients, logistics and packaging materials, is a headwind. In addition, the company is battling supply-chain related headwinds. General Mills’ international presence exposes it to risks of unfavorable currency rates. We believe that the persistence of these factors might be a concern for the quarter to be reported.
On its last earnings call, management stated that it had undertaken several portfolio-reshaping actions over the past year, which is anticipated to boost the top and bottom lines in the long run. However, the net effect of these actions is likely to affect the profits in the near term.
That being said, General Mills has been benefiting from its Accelerate strategy, which aids the company in making the choices of how to win and where to play to boost profitability and enhancing shareholder returns. Under how to win, GIS is focused on four pillars namely brand building, undertaking innovations, unleashing scale and maintaining business strength. The ‘where to play’ principle is outlined to enhance its capabilities to generate profitability through geographic as well as product prioritization along with portfolio restructuring.
Strength in the Pet segment has been a driver. The higher pet population and more humanization and premiumization of pet food since the pandemic have been acting as tailwinds for the company’s pet food category.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for General Mills this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
General Mills has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
PepsiCo, Inc. PEP currently has an Earnings ESP of +2.96% and a Zacks Rank of 2. The company is likely to register a growth in the top and bottom lines when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for PepsiCo’s quarterly earnings is pegged at $1.84, suggesting a 2.8% growth from the year-ago quarter’s reported number. The consensus mark has been unchanged in the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PepsiCo’s quarterly revenues is pegged at $20.83 billion, calling for a 3.2% growth from the year-ago quarter's reported figure. PEP delivered an earnings surprise of 3.8%, on average, in the trailing four quarters.
Philip Morris International PM currently has an Earnings ESP of +4.18% and a Zacks Rank of 3. The company is likely to register a decline in the top and bottom lines when it reports third-quarter 2022 numbers. The consensus mark for PM’s quarterly earnings has remained unchanged in the past 30 days at $1.40 per share. The consensus estimate suggests an 11.4% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $7.17 billion, which suggests a decline of 11.8% from the figure reported in the prior-year quarter. PM delivered an earnings beat of 7.8%, on average, in the trailing four quarters.
Conagra Brands, Inc. CAG currently has an Earnings ESP of +0.55% and a Zacks Rank of 3. The company is likely to register top-and bottom-line growth when it reports first-quarter fiscal 2022 earnings. The Zacks Consensus Estimate for Conagra’s quarterly earnings has moved up by a penny in the last seven days to 52 cents per share, suggesting an increase of 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Conagra’s quarterly revenues is pegged at $2.8 billion, suggesting a rise of 5.4% from the prior-year quarter’s reported figure. Conagra Brands delivered an earnings surprise of 0.4%, on average, in the trailing four quarters.
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