What to Expect From General Mills’ Upcoming Q2 Report?

General Mills (NYSE:GIS) saw its stock fall over 2% intra-day today despite reporting better-than-expected earnings, as revenue came in below estimates and the company cut its full-year outlook, citing weaker demand and inventory challenges.

For the third quarter, the company posted adjusted earnings per share of $1.00, slightly exceeding analyst expectations of $0.98. However, revenue of $4.8 billion fell short of the $4.99 billion consensus, reflecting inventory reductions at retailers and a slowdown in snacking categories.

Organic net sales declined 5% year-over-year, with approximately 4 percentage points of that drop tied to retailer inventory pullbacks and a reversal of favorable timing factors from Q2.

The North America Retail division, which remains General Mills’ largest business segment, saw sales decline 7% to $3.0 billion, highlighting softer consumer demand.

Looking ahead, General Mills lowered its fiscal 2025 guidance, now expecting organic net sales to decline between 2% and 1.5%, down from its previous forecast of flat to 1% growth. The company also revised its adjusted operating profit and EPS outlook, now projecting a 7% to 8% decline in constant currency, compared to the previous range of a 2% to 4% drop.

General Mills, Inc. (NYSE: GIS) is a leading global food company with a diverse portfolio of brands such as Pillsbury, Cheerios, and Betty Crocker. Operating in various segments including Pet, Foodservice, and International, General Mills competes with other major food manufacturers and private label brands. The company is recognized for its focus on innovation and sustainability in the food industry.

On March 19, 2025, General Mills reported earnings per share (EPS) of $1, exceeding the estimated $0.959. This positive EPS result highlights the company's ability to manage costs and drive profitability despite challenges. However, the revenue of approximately $4.84 billion fell short of the estimated $4.96 billion, reflecting the impact of economic concerns and reduced consumer spending on snacks.

General Mills has revised its guidance, anticipating a decline in organic sales for fiscal year 2025. This adjustment is due to heightened competition from more affordable private label brands and a challenging macroeconomic environment. The persistently high cost of living has further impacted consumer spending, leading to a reduction in the company's annual sales forecast.

The fiscal 2025 third-quarter results revealed that organic net sales fell short of expectations, primarily due to unexpected retailer inventory challenges and a slowdown in the snacking categories. Despite these setbacks, General Mills experienced positive market share trends in its Pet, Foodservice, and International segments, indicating areas of improvement and potential growth opportunities.

General Mills' financial metrics provide insight into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 12.93 and a price-to-sales ratio of about 1.67. The enterprise value to sales ratio is around 2.29, while the enterprise value to operating cash flow ratio is approximately 12.72. The earnings yield is about 7.73%, and the debt-to-equity ratio is approximately 1.58. The current ratio is around 0.92, indicating the company's ability to cover short-term liabilities with short-term assets.

General Mills, Inc. (NYSE:GIS) is a leading global food company known for its wide range of products, including cereals, snacks, and pet foods. As it prepares to release its third-quarter fiscal 2025 earnings, analysts have set expectations for an earnings per share (EPS) of $0.95. This represents an 18.8% decline from the previous year, reflecting the challenges the company faces.

The company's revenue is projected to be approximately $4.95 billion, a 2.8% decrease compared to the same quarter last year. This decline is attributed to rising selling, general, and administrative costs, which have impacted the company's financial performance. Despite these challenges, General Mills has a history of outperforming earnings expectations, with an average earnings surprise of 7.8% over the past four quarters.

General Mills plans to increase its media spending by over 40% for the fiscal third quarter, as highlighted in its latest earnings call. This strategic move aims to boost brand visibility and drive sales, even as the company navigates cost pressures. The Zacks Consensus Estimate suggests that revenues will be around $5 billion, slightly higher than Wall Street's projection.

The company's financial metrics provide further insight into its market valuation. General Mills has a price-to-earnings (P/E) ratio of approximately 13.04, indicating how the market values its earnings. The price-to-sales ratio stands at about 1.69, reflecting investor sentiment towards its revenue. Additionally, the enterprise value to sales ratio is around 2.30, suggesting the market's valuation of the company's total worth relative to its sales.

General Mills' debt-to-equity ratio is approximately 1.58, highlighting its reliance on debt financing. The current ratio of around 0.92 suggests the company's ability to cover short-term liabilities with its short-term assets. These financial metrics, combined with the company's strategic initiatives, will be closely watched by investors as the earnings announcement approaches.

RBC Capital analysts maintained a Sector Perform rating on General Mills (NYSE:GIS) with a $70 price target, highlighting ongoing challenges in the packaged food industry that could weigh on the company’s near-term performance.

Retailer inventory fluctuations, weak signals from competitors, and broader economic and political uncertainty continue to create a difficult operating environment for General Mills. In light of these pressures, RBC revised its third-quarter (scheduled to be released on March 19) organic growth forecast downward to -3.1%, compared to the consensus estimate of -2.7%. Earnings per share projections remain at $0.96, aligning with market expectations.

With a soft quarter anticipated, RBC suggests full-year organic growth guidance may be revised lower, with earnings likely to hover near the lower end of the current forecast range. The firm expects General Mills to reinforce its cautious outlook, acknowledging the persistent headwinds in the packaged food sector.

While General Mills remains a steady player in the industry, near-term performance is likely to be constrained as consumer uncertainty and market volatility continue to impact demand.

General Mills, Inc. (NYSE:GIS) is a leading global food company known for its wide range of products, including cereals, snacks, and pet foods. The company operates in a competitive market alongside other major players like Kellogg's and Nestlé. On December 18, 2024, General Mills reported its Q2 2025 earnings, showcasing strong financial performance.

General Mills reported earnings per share (EPS) of $1.40, surpassing the estimated $1.22. This represents a 12% increase year over year on a constant currency basis, as highlighted by Zacks. The company's revenue also exceeded expectations, reaching approximately $5.24 billion compared to the estimated $5.14 billion. This performance underscores General Mills' robust financial health.

The earnings call featured key executives, including CEO Jeff Harmening and CFO Kofi Bruce, who provided insights into the company's strategic direction. Analysts from major financial institutions attended the call, reflecting the market's interest in General Mills' performance. The call was conducted in a listen-only mode, allowing participants to focus on the company's financial results and future plans.

General Mills' financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 13.93, indicating how the market values its earnings. Its price-to-sales ratio is about 1.79, reflecting the market's valuation of its revenue. The enterprise value to sales ratio stands at around 2.40, suggesting how the company's total value compares to its sales.

The company's financial leverage is highlighted by a debt-to-equity ratio of approximately 1.58. This ratio indicates the extent to which General Mills is financing its operations through debt. Additionally, the current ratio of around 0.92 suggests the company's ability to cover its short-term liabilities with its short-term assets. These metrics provide a comprehensive view of General Mills' financial position.

General Mills (NYSE:GIS) delivered stronger-than-expected second-quarter results, with adjusted earnings per share of $1.40 surpassing analyst estimates of $1.22. Revenue rose 2% year-over-year to $5.2 billion, beating the forecasted $5.14 billion. However, despite the solid quarterly performance, shares dipped more than 4% as the company reduced its full-year profit outlook.

The company now anticipates adjusted operating profit to decline 2–4% in constant currency, a revision from its prior guidance of flat to down 2%. The adjustment reflected rising promotional investments and additional challenges expected in the second half of the fiscal year.

While the company achieved progress in key areas, such as accelerating volume growth and returning its North America Pet business to positive growth, the outlook for organic net sales growth in fiscal 2025 narrowed to the lower end of the 0–1% range. Adjusted earnings per share are now projected to decline 1–3% in constant currency, down from the earlier guidance of -1% to +1%.

Second-quarter results were bolstered by temporary factors, including increased retailer inventories, which are expected to reverse in the latter half of the year. Performance varied across segments, with flat sales in North America Retail and a 5% sales increase in the North America Pet business.

Despite progress in several areas, General Mills faces headwinds in maintaining momentum, with the updated guidance reflecting the challenges ahead.

General Mills, Inc. (NYSE:GIS) is a leading global food company known for its wide range of products, including cereals, snacks, and pet foods. As a major player in the consumer goods sector, it competes with other giants like Kellogg's and Nestlé. The company is set to release its quarterly earnings on December 18, 2024, with analysts estimating an EPS of $1.22 and projected revenue of $5.14 billion.

As highlighted by Benzinga, analysts have been revising their forecasts ahead of the earnings call, indicating a keen interest in General Mills' financial performance. The focus is not just on the typical revenue and profit figures but also on key metrics that could provide deeper insights into the company's operations. This anticipation suggests that the upcoming earnings report could significantly impact the stock's price.

Despite the projected revenue increase, analysts expect a decline in earnings for the quarter ending November 2024. This expectation is crucial for understanding the company's earnings outlook. If General Mills surpasses these estimates, the stock might see an upward movement. Conversely, failing to meet expectations could lead to a decline, making the earnings call a pivotal event for investors.

General Mills' financial ratios provide further context for its valuation. With a P/E ratio of approximately 15.56, investors are willing to pay $15.56 for each dollar of earnings. The price-to-sales ratio of about 1.87 indicates that investors pay $1.87 for every dollar of sales. These metrics help investors gauge the company's market value relative to its earnings and sales.

The company's enterprise value to operating cash flow ratio is around 14.05, offering insight into its valuation compared to cash flow. An earnings yield of about 6.43% provides a perspective on shareholder returns. Additionally, a debt-to-equity ratio of approximately 1.44 highlights the proportion of debt in financing assets. The current ratio of around 0.66 suggests the company's ability to cover short-term liabilities with short-term assets.