What to Expect When General Mills (GIS) Reports Earnings Results

NEW YORK (TheStreet) -- General Mills Inc. (GIS) is scheduled to report its fiscal 2015 second quarter earnings results before the market open tomorrow morning, and analysts are expecting the branded consumer foods maker to post a year-over-year decline in earnings per share and revenue for the latest quarter.

Analysts polled by Thomson Reuters are expecting the Cheerios, Green Giant, Pillsbury, and Progresso distributor to report earnings per share of 77 cents, on revenue of $4.79 billion for the 2015 fiscal second quarter.

For the fiscal 2014 second quarter General Mills earnings were 83 cents per share, on revenue of $4.88 billion for the quarter.

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Shares of General Mills are flat in early morning trading on Tuesday. 

Separately, TheStreet Ratings team rates GENERAL MILLS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate GENERAL MILLS INC (GIS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Food Products industry and the overall market, GENERAL MILLS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • GENERAL MILLS INC's earnings per share declined by 21.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL MILLS INC increased its bottom line by earning $2.83 versus $2.79 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $2.83).
  • 37.23% is the gross profit margin for GENERAL MILLS INC which we consider to be strong. Regardless of GIS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.08% trails the industry average.
  • GIS, with its decline in revenue, slightly underperformed the industry average of 2.0%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • In its most recent trading session, GIS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • You can view the full analysis from the report here: GIS Ratings Report

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