General Mills, Inc. (GIS - Free Report) is likely to post an increase in the top and the bottom line when it reports first-quarter fiscal 2021 results on Sep 23. The Zacks Consensus Estimate for first-quarter earnings is unchanged at 87 cents per share in the past 30 days. The estimate suggests an increase of 10.1% from the year-ago quarter’s reported figure. This global manufacturer and marketer of branded consumer foods has a trailing four-quarter earnings surprise of 4.3%, on average. In the last reported quarter, the company delivered an earnings surprise of 3.8%.

Moreover, the consensus mark for revenues is pegged at $4.18 billion that indicates growth of 4.4% from the figure reported in the year-ago quarter.

General Mills, Inc. Price and EPS Surprise

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

Key Factors to Note

General Mills has been witnessing higher consumer demand for its products in the at-home food business. The upside can be attributed to increased at-home consumption amid the coronavirus outbreak. In a recent press release, management stated that it saw adequate retail inventory restocking in the first quarter of fiscal 2021. Moreover, the company anticipates adjusted operating profit margin expansion for the fiscal first quarter thanks to robust fixed-cost leverage.

Apart from these, General Mills’ robust cost-saving efforts like the Holistic Margin Management program are yielding results. Also, the company’s focus on its core priorities for fiscal 2021 bodes well.

However, General Mills has been seeing reduced demand for its away-from-home food business amid the coronavirus pandemic. Also, escalated costs are a concern for the company.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for General Mills this earnings season. 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 has a Zacks Rank #3 and an Earnings ESP of -2.21%.