General Mills Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

General Mills (NYS: GIS) reported earnings on Dec. 19. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Nov. 25 (Q2), General Mills met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
 General Mills tallied revenue of $4.88 billion. The 14 analysts polled by S&P Capital IQ foresaw a top line of $4.88 billion on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $4.62 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.86. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.79 per share. GAAP EPS of $0.82 for Q2 were 22% higher than the prior-year quarter's $0.67 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 35.7%, 120 basis points better than the prior-year quarter. Operating margin was 17.0%, 150 basis points better than the prior-year quarter. Net margin was 11.1%, 150 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $4.39 billion. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $17.70 billion. The average EPS estimate is $2.68.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,125 members out of 1,188 rating the stock outperform, and 63 members rating it underperform. Among 345 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 332 give General Mills a green thumbs-up, and 13 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 $42.26.

Can your portfolio provide you with enough income to last through retirement? You'll need more than General Mills. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

The article General Mills Beats Analyst Estimates on EPS originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement