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

NEW YORK (TheStreet) -- General Mills Inc. (GIS) is scheduled to release its fiscal 2015 fourth quarter earnings results before the market open on Wednesday morning. Analysts are expecting the branded and packaged foods company to report a year-over-year rise in earnings per share and revenue for the most recent quarter.

Analysts polled by Thomson Reuters have forecast General Mills to post earnings of 71 cents per share on revenue of $4.53 billion for the quarter ended May 2015.

Last year, General Mills said its adjusted earnings were 65 cents per diluted share on net sales of $4.3 billion for the fiscal 2014 fourth quarter.

Shares of General Mills are down by 0.04% to $56.04 in mid-morning trading on Tuesday.

General Mills is a Minneapolis, MN.-based food maker with brands and products including Cheerios, Pillsbury, Haagen-Dazs ice cream, Green Giant, Yoplait and Progresso.

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

"We rate GENERAL MILLS INC (GIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. We feel its 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:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Despite the weak revenue results, GIS has outperformed against the industry average of 11.2%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 35.71% 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, GIS's net profit margin of 7.88% compares favorably to the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings 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. For the next year, the market is expecting a contraction of 0.2% in earnings ($2.83 versus $2.83).
  • You can view the full analysis from the report here: GIS Ratings Report

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