Factors Setting the Tone for General Mills (GIS) Q4 Earnings
Zacks Investment Research | Jun 29, 2020 02:48AM ET
General Mills (NYSE:GIS), Inc. GIS is scheduled to report fourth-quarter fiscal 2020 results on Jul 1. This global manufacturer and marketer of branded consumer foods has a trailing four-quarter positive earnings surprise of 5.6%, on average.
The Zacks Consensus Estimate for fourth-quarter earnings has gone down by a penny to $1.04 per share in the past 30 days. This suggests a rise of 25.3% from the figure reported in the year-ago quarter. The consensus mark for revenues is pegged at $4.88 billion, which indicates growth of 17.3% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fiscal 2020 earnings is pegged at $3.54 per share, which suggests growth of 9.9% from the figure reported in the year-ago period. For fiscal 2020, the consensus mark for revenues is pegged at $17.53 billion.
Factors at Play
In a recent press release, General Mills notified that it has been witnessing higher consumer demand for its products in at-home food segment. The upside can be attributed to panic-induced stockpiling amid the coronavirus outbreak. For the fiscal fourth quarter, management expects organic sales growth of double digits year over year. Further, the company anticipates adjusted operating profit at constant currency (cc) to have increased at a faster rate than organic net sales in the to-be-reported quarter.
Additionally, General Mills anticipates to have exceeded it’s previously provided fiscal 2020 guidance in the quarter under review. For fiscal 2020, General Mills had earlier anticipated 1-2% improvement in organic sales and 4-6% growth in adjusted operating profit (at cc). Moreover, the company had envisioned a 6-8% rise in adjusted earnings per share (at cc).
However, the company informed that it expects a greater impact of unfavorable currency translations as well as divestitures in the fiscal fourth quarter. Moreover, the company’s away-from-home food business has been witnessing challenges amid the pandemic.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Mills this time around. The combination of a positive Zacks Investment Research
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