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S&P 500 (NYSE:SPY) component General Mills Inc. (NYSE:GIS) reported net income above Wall Street’s expectations for the second quarter. General Mills is a manufacturer and marketer of branded consumer foods sold through retail stores. It also supplies branded and unbranded food products to the food service and commercial baking industries.
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General Mills Inc. Earnings Cheat Sheet
Results: Net income for General Mills Inc. rose to $541.6 million (82 cents per share) vs. $444.8 million (67 cents per share) in the same quarter a year earlier. This marks a rise of 21.8% from the year-earlier quarter.
Revenue: Rose 5.6% to $4.88 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: General Mills Inc. reported adjusted net income of 86 cents per share. By that measure, the company beat the mean estimate of 79 cents per share. It beat the average revenue estimate of $4.11 billion.
Quoting Management: Chairman and Chief Executive Officer Ken Powell said the second-quarter results reflected good performance by each of the company’s operating segments. “Our U.S. Retail segment posted gains in pound volume, net sales and operating profit. The Bakeries and Foodservice segment generated strong double-digit operating profit growth. And our International segment recorded good sales and profit growth for established businesses in addition to the incremental contributions from Yoki and Yoplait Canada.”
The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 35.3% and in the fourth quarter of the last fiscal year, the figure rose 1.6%.
Revenue has risen for the last four quarters. Revenue increased 5.3% to $4.05 billion in the first quarter. The figure rose 11.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 13% in the third quarter of the last fiscal year from the year-ago quarter.
For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 4 cents in the first quarter and by 2 cents in the fourth quarter of the last fiscal year.
Looking Forward: Expectations for the company’s next-quarter performance are more favorable than they were a month ago. The average estimate for the third quarter is now at 59 cents per share, up from 59 cents. In the last thirty days, the average estimate for the fiscal year has moved up from $2.65 per share to $2.66.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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