General Mills (GIS) PT Lowered to $56 at Susquehanna Following 1Q Release
Susquehanna lowered its price target on General Mills (NYSE: GIS) to $56.00 (from $58.00) while maintaining a Neutral rating following the company's 1Q earnings report. GIS kept FY18 guidance despite missing EBIT consensus by 8c. However, the bulk of the miss was gross margin related due to the timing of trade expenses.
Reported sales declined 4% to $3.77Bn and LFL sales down 4%, reflecting NA retails sales decline and Asia & LatAm decline. Susquehanna's FY18 EPS estimates come down by 4c, as despite 6c 1Q18 miss, analyst PabloZuanic now factors a slightly lower share count.