The 10-second takeaway
For the quarter ended Aug. 26 (Q1), General Mills met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins expanded across the board.
General Mills booked revenue of $4.05 billion. The 13 analysts polled by S&P Capital IQ expected to see revenue of $4.09 billion on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $3.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.66. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.63 per share. GAAP EPS of $0.82 for Q1 were 34% higher than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.2%, 260 basis points better than the prior-year quarter. Operating margin was 19.5%, 290 basis points better than the prior-year quarter. Net margin was 13.5%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.86 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $17.71 billion. The average EPS estimate is $2.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,118 members out of 1,181 rating the stock outperform, and 63 members rating it underperform. Among 327 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 313 give General Mills a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Mills is outperform, with an average price target of $41.72.
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