NEW YORK (TheStreet) -- General Mills (GIS) shares are up 1.1% to $51.71 in early market trading on Wednesday after the consumer foods manufacturer reported its second quarter earnings results before the opening bell today.
The company reported net income of $346.1 million, or 80 cents per diluted share on an adjusted basis, on revenue of $4.71 billion, a 3% drop from the same quarter last year. On average analysts were expecting the company to earn 77 cents per diluted share on revenue of $4.79 billion.
The company plans to cut 700-800 jobs in 2015 in an effort to reduce costs as sales in the U.S., its largest market, have fallen for five consecutive quarters. Selling, general and administrative expenses fell 5.1% during the quarter while the company also trimmed its U.S. advertising budged by 10% in an effort to reduce costs.
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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."