The 10-second takeaway
For the quarter ended May 26 (Q4), General Mills beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted. GAAP earnings per share expanded.
Gross margins contracted, operating margins shrank, net margins grew.
General Mills reported revenue of $4.41 billion. The 14 analysts polled by S&P Capital IQ wanted to see sales of $4.32 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $4.07 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 $0.53. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. Non-GAAP EPS of $0.53 for Q4 were 12% lower than the prior-year quarter's $0.60 per share. GAAP EPS of $0.55 for Q4 were 12% higher than the prior-year quarter's $0.49 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 34.7%, 210 basis points worse than the prior-year quarter. Operating margin was 13.7%, 200 basis points worse than the prior-year quarter. Net margin was 8.3%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.31 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $18.32 billion. The average EPS estimate is $2.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,133 members out of 1,199 rating the stock outperform, and 66 members rating it underperform. Among 355 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 341 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 $49.65.
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