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General Mills' Q1 Earnings Coming Up: What Awaits GIS Stock?
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General Mills, Inc. (GIS - Free Report) is likely to register a top and bottom-line decline when it reports first-quarter fiscal 2025 earnings on Sep. 18. The Zacks Consensus Estimate for revenues is pegged at $4.78 billion, which suggests a decrease of 2.5% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.05 per share. This indicates a decline of 3.7% from the year-ago quarter’s reported figure. GIS has a trailing four-quarter earnings surprise of nearly 6%, on average.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills has been operating amid a tough operating landscape. On its last earnings call, the company anticipated the operating environment to continue evolving in fiscal 2025. It expected that the macroeconomic uncertainty will lead consumers to continue seeking value, influencing both the products they purchase and the channels they shop through.
General Mills faces ongoing margin pressure from rising production costs. On its fourth-quarter earnings call, General Mills stated that the rate of inflation for goods and services in the United States and many other countries remains above historical levels, even though it has moderated from recent highs. Inflation is expected to impact the company's input costs in fiscal 2025. The company expects input cost inflation to be 3-4% of the cost of goods sold in fiscal 2025, with labor being the primary driver affecting sourcing, manufacturing and logistics expenses.
On its last earnings call, General Mills stated it expects first-quarter results to fall short of the full-year growth expectations. This is likely to stem from a considerable increase in brand-building investment, as well as tough comparisons with strong organic net sales growth and adjusted gross margin performance in the year-ago period. Our model suggests a 10-bps contraction in the adjusted gross margin to 35.3% for the first quarter. We expect the adjusted operating margin to shrink 70 bps to 17.6% in the first quarter.
However, General Mills has been benefiting from the strength of its brands and a focus on its Accelerate strategy. The strategy is based on four pillars that include building brands, undertaking constant innovation, leveraging scale and standing for good. GIS continues to focus on core markets, global platforms and local gem brands with growth prospects. The emphasis on innovation and brand marketing has been helping the company strengthen its product portfolio. General Mills has also been benefiting from its measures to boost efficiency, including its Holistic Margin Management strategy.
What the Zacks Model Unveils for GIS
Our proven model predicts an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
General Mills carries a Zacks Rank #3 and has an Earnings ESP of +1.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 3 at present. DRI is expected to register top and bottom-line growth in its upcoming release. The consensus estimate for quarterly revenues is pegged at $2.8 billion, which calls for 2.6% growth from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Darden Restaurants’ quarterly earnings has declined by a penny in the past seven days to $1.83, which indicates a 2.8% rise from the figure reported in the year-ago quarter. DRI delivered a trailing four-quarter average earnings surprise of 2.8%.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $79.82 billion, which suggests growth of 1.1% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has gone up by a penny in the past seven days to $5.04. The consensus mark for earnings indicates growth of 3.7% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Domino's Pizza, Inc. (DPZ - Free Report) currently has an Earnings ESP of +3.94% and a Zacks Rank of 3. The company is likely to register top-line growth in its upcoming earnings release. The consensus mark for DPZ’s quarterly revenues is pegged at $1.1 billion, which indicates a 7.4% rise from the figure reported in the prior-year quarter.
The consensus mark for Domino's Pizza’s quarterly earnings has moved up by 2 cents in the past 30 days to $3.66, which implies a decline of 12.4% from the year-ago quarter’s actual. DPZ delivered an earnings beat of 11.2%, on average, in the trailing four quarters.
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General Mills' Q1 Earnings Coming Up: What Awaits GIS Stock?
General Mills, Inc. (GIS - Free Report) is likely to register a top and bottom-line decline when it reports first-quarter fiscal 2025 earnings on Sep. 18. The Zacks Consensus Estimate for revenues is pegged at $4.78 billion, which suggests a decrease of 2.5% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.05 per share. This indicates a decline of 3.7% from the year-ago quarter’s reported figure. GIS has a trailing four-quarter earnings surprise of nearly 6%, on average.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote
Things to Note About GIS’ Upcoming Release
General Mills has been operating amid a tough operating landscape. On its last earnings call, the company anticipated the operating environment to continue evolving in fiscal 2025. It expected that the macroeconomic uncertainty will lead consumers to continue seeking value, influencing both the products they purchase and the channels they shop through.
General Mills faces ongoing margin pressure from rising production costs. On its fourth-quarter earnings call, General Mills stated that the rate of inflation for goods and services in the United States and many other countries remains above historical levels, even though it has moderated from recent highs. Inflation is expected to impact the company's input costs in fiscal 2025. The company expects input cost inflation to be 3-4% of the cost of goods sold in fiscal 2025, with labor being the primary driver affecting sourcing, manufacturing and logistics expenses.
On its last earnings call, General Mills stated it expects first-quarter results to fall short of the full-year growth expectations. This is likely to stem from a considerable increase in brand-building investment, as well as tough comparisons with strong organic net sales growth and adjusted gross margin performance in the year-ago period. Our model suggests a 10-bps contraction in the adjusted gross margin to 35.3% for the first quarter. We expect the adjusted operating margin to shrink 70 bps to 17.6% in the first quarter.
However, General Mills has been benefiting from the strength of its brands and a focus on its Accelerate strategy. The strategy is based on four pillars that include building brands, undertaking constant innovation, leveraging scale and standing for good. GIS continues to focus on core markets, global platforms and local gem brands with growth prospects. The emphasis on innovation and brand marketing has been helping the company strengthen its product portfolio. General Mills has also been benefiting from its measures to boost efficiency, including its Holistic Margin Management strategy.
What the Zacks Model Unveils for GIS
Our proven model predicts an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
General Mills carries a Zacks Rank #3 and has an Earnings ESP of +1.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 3 at present. DRI is expected to register top and bottom-line growth in its upcoming release. The consensus estimate for quarterly revenues is pegged at $2.8 billion, which calls for 2.6% growth from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Darden Restaurants’ quarterly earnings has declined by a penny in the past seven days to $1.83, which indicates a 2.8% rise from the figure reported in the year-ago quarter. DRI delivered a trailing four-quarter average earnings surprise of 2.8%.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $79.82 billion, which suggests growth of 1.1% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s earnings has gone up by a penny in the past seven days to $5.04. The consensus mark for earnings indicates growth of 3.7% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Domino's Pizza, Inc. (DPZ - Free Report) currently has an Earnings ESP of +3.94% and a Zacks Rank of 3. The company is likely to register top-line growth in its upcoming earnings release. The consensus mark for DPZ’s quarterly revenues is pegged at $1.1 billion, which indicates a 7.4% rise from the figure reported in the prior-year quarter.
The consensus mark for Domino's Pizza’s quarterly earnings has moved up by 2 cents in the past 30 days to $3.66, which implies a decline of 12.4% from the year-ago quarter’s actual. DPZ delivered an earnings beat of 11.2%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.