Minneapolis, Minnesota-based General Mills, Inc. (GIS) is a global manufacturer and marketer of branded consumer foods. It operates through North America Retail, International, Pet, and North America Foodservice segments. With a market cap of nearly $34 billion, General Mills boosts an extensive portfolio of 100+ brands.
The packed food giant is expected to announce its third-quarter results on Wednesday, Mar. 19. Ahead of the event, analysts expect General Mills to report a non-GAAP profit of $0.99 per share, down 15.4% from $1.17 per share reported in the year-ago quarter. The company has a robust earnings surprise history. It has surpassed analysts’ bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter increased 12% year-over-year to $1.40, exceeding the consensus estimates by 14.8%.
For fiscal 2025, General Mills is expected to report an adjusted EPS of $4.42, down 2.2% from $4.52 in fiscal 2024. While in 2026, its earnings are expected to increase 3.9% year-over-year to $4.59 per share.
General Mills stock prices have plunged 7.3% over the past 52 weeks, substantially underperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.4% returns and the S&P 500 Index’s ($SPX) 24.1% surge during the same time frame.
Despite reporting better-than-expected results General Mills’ stock prices declined 3.1% after the release of its Q2 results on Dec. 18. The company’s net sales increased nearly 2% year-over-year to $5.2 billion which surpassed Street’s expectations by a notable 1.6%. Meanwhile, its non-GAAP operating profits for the quarter increased 7.5% year-over-year to $1.1 billion which surpassed analysts’ estimates by a notable margin.
However, these favorable figures were influenced by an increase in retailer inventory in North America Retail, partially due to the Thanksgiving holiday shifting from the last week of the second quarter of fiscal 2024 to the first week of the third quarter of fiscal 2025, as well as favorable trade and expense timing. These impacts are anticipated to reverse in the second half of fiscal 2025.
The consensus opinion on GIS stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 18 analysts covering the stock, five recommend “Strong Buy” and 13 advise a “Hold” rating. Its mean price target of $69.83 indicates 16.8% premium to current price levels.
