General Mills (GIS) Misses Q2 EPS by 1c, Revenue Beats, Offers Outlook
General Mills (NYSE: GIS) reported Q2 EPS of $0.82, $0.01 worse than the analyst estimate of $0.83. Revenue for the quarter came in at $4.2 billion versus the consensus estimate of $4.08 billion.
General Mills updated its key full-year fiscal 2018 targets:
- Organic net sales are expected to range between flat and down 1 percent, above the previous range of a decline of 1 to 2 percent. This updated target represents a 300 to 400 basis point improvement over fiscal 2017 results. In addition, the company now estimates currency translation will increase reported net sales by approximately 1 percentage point in fiscal 2018.
- Constant-currency total segment operating profit is expected to be in a range between flat and up 1 percent, which is unchanged from previous guidance. After an 11 percent decline in first-half constant-currency total segment operating profit, the company expects to generate double-digit growth in the second half of fiscal 2018, driven by favorable net price realization and mix and increased cost savings, including savings from its new global sourcing initiative.
- Adjusted operating profit margin is expected to be below year-ago levels, compared to the previous expectation of year-over-year improvement.
- Constant-currency adjusted diluted EPS is expected to increase 1 to 2 percent from the base of $3.08 earned in fiscal 2017, which is unchanged from previous guidance. This outlook excludes any impact from proposed U.S. tax reform legislation. The company continues to estimate currency translation will be a 1 cent benefit to fiscal 2018 adjusted diluted EPS.
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