- General Mills reported an adjusted EPS of $1.40, up from $1.25 the previous year, beating the estimate of $1.22.
- Adjusted gross margin improved to 36.3% from 35% year-over-year, exceeding the expected 35%.
- Total net sales reached $5.24 billion, marking a 2% increase from the previous year and surpassing the projection of $5.12 billion.
- North America Retail achieved net sales of $3.32 billion, a slight increase of 0.5% year-over-year, slightly above the estimate of $3.28 billion.
- North America Foodservice saw net sales rise by 8.2% to $630.0 million, significantly higher than the forecast of $593.1 million.
- The Pet Segment recorded net sales of $595.8 million, a 4.7% increase from the previous year, outpacing the expected $573.5 million.
- International net sales were $690.6 million, a 1.1% increase from the prior year, but below the estimated $699.4 million.
- North America Foodservice Organic Net Sales grew by 8%, outperforming the estimate of a 2.3% increase.
- International Organic Net Sales declined by 3%, in contrast to the estimated growth of 1%.
- Analyst ratings include 5 buys, 17 holds, and 1 sell recommendation for General Mills.
General Mills on Smartkarma
Analyst coverage on General Mills by Baptista Research on Smartkarma indicates a bullish sentiment towards the company’s future. In the report “General Mills Inc.: A Tale Of Strategic Divestitures & Bolt-On Acquisitions! – Major Drivers”, the analysts note a slight improvement in the macro environment, with North America Retail categories experiencing growth. The report delves into factors influencing the company’s pricing and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
Furthermore, in the report “General Mills Inc.: Will The Acquisition of Edgard & Cooper To Expand Pet Food Portfolio Up Their Game? – Major Drivers”, Baptista Research highlights General Mills‘ coherent strategy on product enhancement and brand investments. The company’s leadership shows a forward-looking approach, especially in areas like pet food and cereals, crucial to their portfolio. These insights offer investors a comprehensive view of General Mills‘ trajectory and potential investment opportunities.
A look at General Mills Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Mills, Inc., a global consumer foods manufacturer, is positioned with a mixed outlook based on the Smartkarma Smart Scores. The company scores well in Dividend and Momentum, indicating a strong performance in these areas. With a score of 4 in Dividend, investors can expect consistent and attractive dividend payouts. Momentum, with a score of 3, suggests that General Mills has the potential for sustained growth in the future.
However, there are areas where General Mills could improve. The company’s Value and Growth scores are average, indicating room for enhancement in these aspects. With a Value score of 3, there may be opportunities for General Mills to enhance its valuation metrics and become more attractive to investors. Similarly, the Growth score of 3 highlights the potential for General Mills to focus on strategies that drive long-term growth. The Resilience score of 2 suggests a relatively lower level of resilience, indicating a need for the company to fortify its ability to withstand economic fluctuations and market challenges.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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