General Mills Beats on Revenue, Matches Expectations on EPS
General Mills (NYS: GIS) reported earnings on March 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 26 (Q3), General Mills beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP EPS shrank.
Margins contracted across the board.
General Mills recorded revenue of $4.12 billion. The 14 analysts polled by S&P Capital IQ wanted to see net sales of $4.08 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $3.65 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.55. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.55 per share on the same basis. GAAP EPS of $0.58 for Q3 were 1.7% lower than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.6%, 260 basis points worse than the prior-year quarter. Operating margin was 16.2%, 140 basis points worse than the prior-year quarter. Net margin was 9.5%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.13 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $16.73 billion. The average EPS estimate is $2.54.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,070 members rating the stock outperform and 61 members rating it underperform. Among 305 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 294 give General Mills a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Mills is outperform, with an average price target of $41.89.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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