General Mills Anticipates Decline in Q4 Earnings Amid Market Challenges

Minneapolis-based General Mills, Inc. (GIS) is a major player in branded consumer foods, boasting a market cap of $31 billion. The company’s product lineup includes ready-to-eat cereals, convenient meals, nutrition bars, and frozen snacks, among others. General Mills is set to announce its fiscal Q4 earnings for 2025 on Wednesday, June 25.

Q4 Earnings Expectations

Analysts project that General Mills will report a profit of $0.71 per share, representing a 29.7% decrease from $1.01 per share in the same quarter last year. Despite this expected decline, GIS has shown a strong pattern of surpassing Wall Street’s earnings projections for four consecutive quarters. In Q3, the company’s EPS was $1, exceeding the forecast by 5.3%.

Outlook for Fiscal 2025 and Beyond

Looking ahead to fiscal 2025, analysts anticipate GIS will report a profit of $4.19 per share, down 7.3% from $4.52 in fiscal 2024. Further projections indicate that EPS may decrease by 4.8% year-over-year to $3.99 in fiscal 2026.

Stock Performance and Market Comparison

Over the past 52 weeks, GIS has experienced a decline of 20.1%. In comparison, the S&P 500 Index has risen by 8.7%, while the Consumer Staples Select Sector SPDR Fund (XLP) has gained 7.1% in the same period.

Q3 Earnings Review

On March 19, shares of GIS fell by 2.1% following a mixed Q3 earnings report. The company’s adjusted earnings were $1 per share, down 14.5% year-over-year, yet still above forecasts by 5.3%. Cost savings from the Holistic Margin Management (HMM) program contributed positively by lowering the cost of sales compared to the previous year. However, revenue declined 5% to $4.8 billion, falling short of consensus estimates by 2.4%. This decline resulted from higher-than-expected retailer inventory reductions and a sluggish snacking segment, both of which negatively impacted organic sales. Additionally, adjusted operating profit dropped 12.4% year-over-year to $800.8 million, further affecting profitability.

Analyst Ratings Overview

Wall Street analysts have adopted a cautious stance on GIS, assigning an overall “Hold” rating. Among 20 analysts covering the stock, five recommend a “Strong Buy,” 13 suggest a “Hold,” and two indicate a “Strong Sell.” The average price target for GIS is $61.55, suggesting a potential upside of 9.6% from its current levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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