Earnings Alerts

General Mills (GIS) Earnings: 4Q Adjusted EPS Surpasses Estimates Despite Sales Decline

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  • General Mills reported adjusted EPS of $1.01 for Q4 2024, beating the estimate of $1.00 but down from last year’s $1.12.
  • The adjusted gross margin was 34.9%, very close to last year’s 35% and above the estimate of 34%.
  • Net sales amounted to $4.71 billion, a 6.3% decrease year-over-year, missing the estimate of $4.87 billion.
  • North America Retail net sales were $2.85 billion, down 6.9% year-over-year, versus an estimate of $2.93 billion.
  • North America Foodservice net sales increased by 4.4% year-over-year to $589.0 million, surpassing the estimate of $571.1 million.
  • The Pet Segment saw net sales of $602.1 million, a decline of 8.1% year-over-year, missing the estimate of $627.4 million.
  • International net sales were $667.5 million, a 10% drop year-over-year, below the estimate of $730.2 million.
  • The Pet Segment’s organic net sales declined by 8%, worse than the expected drop of 4.32%.
  • Adjusted operating profit is expected to range between down 2 percent and flat in constant currency from the base of $3.6 billion reported in fiscal 2024.
  • Adjusted diluted EPS is expected to range between down 1 percent and up 1 percent in constant currency from the base of $4.52 earned in fiscal 2024.
  • CEO Jeff Harmening stated that General Mills delivered on its updated guidance by adapting its plans and improving efficiency in response to a challenging operating environment.
  • General Mills achieved better volume performance in the second half of the year and generated significant cost savings through Holistic Margin Management.
  • As a result, the company was able to protect its brand investment while meeting profit and cash commitments.
  • Analyst recommendations include 4 buys, 17 holds, and 1 sell.

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General Mills on Smartkarma

On Smartkarma, a platform for independent investment research, analysts from Baptista Research have provided insightful coverage of General Mills. In one report titled “General Mills Inc.: Are Its Portfolio Reshaping & Acquisition Strategy Paying Off? – Major Drivers,” the analyst highlights the encouraging third-quarter results of General Mills, especially noting improvements in North America retail and the pet segment. The report mentions CEO Jeff Harmening’s forecast for fourth-quarter sales to mirror the annual performance seen in the previous quarter, albeit with some uncertainty due to external variables. Baptista Research aims to evaluate these factors to determine the company’s future valuation using a discounted cash flow methodology.

In another report by Baptista Research titled “General Mills Inc.: Can The Acquisition Of Fera Pets Up Their Pet Supplements Game? – Major Drivers,” the analyst discusses General Mills‘ recent performance, noting mixed results with revenues slightly below Wall Street expectations but earnings surpassing them. The report highlights the company’s efforts to address on-shelf availability challenges, which had been impacted by strong prior-year performance. Despite the challenges, General Mills managed to improve on-shelf availability and reduce disruption costs, showcasing strategic progress in their operations. This coverage on Smartkarma provides investors with valuable insights into General Mills and its potential future prospects.


A look at General Mills Smart Scores

FactorScoreMagnitude
Value2
Dividend4
Growth3
Resilience2
Momentum4
OVERALL SMART SCORE3.0

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 manufacturer and marketer of consumer foods, is positioned for a future that emphasizes dividends and momentum. With a dividend score of 4, the company shows promise in providing consistent returns to its investors. Additionally, a strong momentum score of 4 indicates that General Mills is gaining traction and moving forward in the market. While its value and resilience scores are average, with scores of 2, the company’s growth potential is also rated at 3, reflecting a moderately positive outlook in expanding its operations.

General Mills, known for its branded consumer foods, has strengths in dividends and momentum, suggesting a stable and growing market presence in the long term. Although the company’s overall outlook is solid, there may be room for further improvement in the value and resilience aspects based on the Smart Scores analysis. As General Mills continues to navigate the consumer foods industry and provide products to various sectors, the focus on dividends and momentum could drive its success and shareholder value moving forward.


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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