Image Source: Unsplash

General Mills, Inc. (GIS - Free Report) is likely to register top-and bottom-line growth when it reports second-quarter fiscal 2023 earnings on Dec 20, 2022. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.15 billion, suggesting an increase of 2.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the last seven days to $1.06 per share, indicating a 7.1% jump from the figure reported in the prior-year quarter.

We expect fiscal second-quarter net revenues to be up 1.6% year over year to $5,106.7 million and the bottom line to improve 4.7% to $1.04 a share.

The manufacturer and marketer of branded consumer food products has a trailing four-quarter earnings surprise of 6.1%, on average. In the last reported quarter, General Mills delivered an earnings surprise of 11%.

General Mills, Inc. Price and EPS Surprise

General Mills, Inc. price-eps-surprise | General Mills, Inc. Quote

Things To Note

General Mills has been benefiting from its Accelerate strategy, which aids in making the choices of how to win and where to play to boost profitability and enhance shareholder returns. Under how to win, General Mills is focused on four pillars — brand building, undertaking innovations, unleashing scale and maintaining business strength. Where to play principle is outlined to enhance its capabilities to generate profitability through geographic and product prioritization and portfolio restructuring.

Strength in the Pet segment has been an important growth driver for General Mills. A higher pet population and more humanization and premiumization of pet food since the pandemic have been acting as tailwinds for General Mills’ pet food category. The persistence of these upsides is likely to have contributed to GIS’s second-quarter fiscal 2023 performance.

However, the company is grappling with cost inflation. In this regard, elevated labor, energy and transportation costs are headwinds. The company is also battling supply-chain bottlenecks. General Mills’ international presence exposes it to risks of unfavorable currency rates. We believe that the persistence of these factors might be a concern for the quarter to be reported.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for General Mills this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

General Mills currently carries a Zacks Rank #3 and has an Earnings ESP of +0.11%.

More By This Author: