General Mills, the Minneapolis-based foodsmaker, is scheduled to release its fiscal second-quarter earnings before the market opens on Wednesday. Here are the key details you need to know.
Net Income Expectations
According to a consensus estimate from 12 analysts polled by FactSet, General Mills is anticipated to report a profit of $680.3 million for the quarter ended on November 26. This is compared to $605.9 million in the same period last year.
Projected Sales
The consensus estimate from 14 analysts surveyed by FactSet reveals that analysts expect General Mills to post sales of $5.35 billion for this quarter. In comparison, the company reported sales of $5.22 billion in the same period last year.
Expected Earnings
Analysts are forecasting that the company will post earnings of $1.16 per share, based on the consensus estimate from 17 analysts.
Stock Performance
During the quarter, General Mills’ stock price fell approximately 15% and is currently trading at $66.45 per share.
What to Watch For
Sales Growth Concerns
Analysts at Bank of America believe that General Mills’ sales growth may fall short; however, they note that the company has enough flexibility within its organization to surpass earnings estimates. Concerns are being raised regarding sales of General Mills’ pet food brands and its North American market, as there have been indications of pressure in these areas due to feedback from competitors and a slowdown in price increases. The analysts also point out that there have been no significant improvements in volume.
Leadership Changes
Recently, General Mills announced changes in its leadership ranks. Jon Nudi, former president of the North American Retail group, has been appointed as the head of the Pet and International businesses. Additionally, Dana McNabb, former Chief Strategy and Growth Officer, has been named as the head of North American retail. Bank of America analysts believe that these leadership changes indicate the potential for self-help actions to address recent weakness.