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Shares of General Mills Inc. plunged 9.6% toward a 5-year low in morning trade Wednesday, enough to pace the S&P 500's decliners, after the consumer foods company reported a fiscal third-quarter profit that beat expectations but slashed its outlook. The stock hit an intraday low of $44.79, the lowest level seen since Feb. 19, 2013. A close at current levels would mark the biggest one-day percentage decline since it shed 11.2% on March 18, 2009, also following fiscal third-quarter results. The stock has now plummeted 24.5% over the past 12 months, while the SPDR Consumer Staples Select Sector ETF has lost 5.4% and the S&P 500 has climbed 15.9%.
General Mills Inc. said higher food and shipping costs hurt profitability in the latest quarter and will weigh on the food maker's earnings for the year. Comparable sales rose 1% in the quarter, including a bump in the U.S., as more people bought General Mills products like Nature Valley granola bars and Cheerios cereal.
General Mills' stock on track to open at 5-year low
General Mills' stock extends slide, plunges 9.8% premarket after Q3 results
General Mills Inc. slashed its profit outlook for the current fiscal year as the cereal and yogurt maker prepares to address hefty supply-chain costs. The maker of Cheerios and Hamburger Helper now expects constant-currency operating profit to drop 5% to 6%, compared with its previous expectation of being flat to down 1%.
General Mills Inc. said Wednesday it had net income of $941 million, or $1.62 a share, in its fiscal third quarter to Feb. 25, up from $357.8 million, or 61 cents a share, in the year-earlier period, boosted by a tax benefit from the December revamp. Adjusted per-share earnings came to 79 cents, a penny ahead of the FactSet consensus of 78 cents. Sales rose 2% to $3.88 billion, also ahead of the FactSet consensus of $3.87 billion. The company, which recently announced the proposed acquisition of Blue Buffalo Pet Products Inc., said it will continue to pursue a consumer first strategy aimed at boosting profitability. It is also planning actions to offset rising freight costs, further cost cuts and actions aimed at increasing revenue. Chief Executive Jeff Harmening said he was disappointed with the the company's bottom-line results. "Our third-quarter operating profit fell well short of our expectations, and cost pressures are impacting our full-year outlook," he wrote. "Like the broader industry, we're seeing sharp increases in input costs, including inflation in freight and commodities. Because of our improved volume performance, we're also incurring higher operational costs." Shares fell almost 4% premarket and are down 16% in the last 12 months, while the S&P 500 has gained 16%.
General Mills Q3 revenue $3.88 bln vs. $3.79 bln; FactSet consensus $3.87 bln
General Mills Q3 adj. EPS 79 cents; FactSet consensus 78 cents
General Mills Q3 EPS $1.62 vs. 61 cents a year ago
S&P Global Ratings downgraded General Mills Inc. to BBB from BBB-plus on Friday, after the company said it is acquiring Blue Buffalo Pet Products Inc. for about $8.0 billion. The new rating is just two notches above speculative, or "junk" status. The rating agency said it expects General Mills to finance the deal with a combination of new debt, cash on hand and equity, raising its leverage to about 4.5 times from 3.2 times for the 12 months to Nov. 26, 2017. "The downgrade reflects our belief that General Mills' pro forma credit protection measures will deteriorate following this acquisition and will remain weaker than our prior expectations for several years after the close of the transaction," analyst Bea Chiem wrote in a report. S&P expects management to meet their pledge to restore credit measures by issuing equity and suspending its dividend. "We expect General Mills to be able to effectively integrate Blue Buffalo and continue to grow the brand and gain market share at food, drug, and mass retailers," said Chiem.
S&P downgrades General Mills rating to BBB vs. BBB-plus after Blue Buffalo deal
General Mills Inc. said Friday it's purchasing pet foods maker Blue Buffalo Inc. for $40 a share in cash, or roughly $8 billion. General Mills said the deal will immediately add to its net sales growth and operating margin profile, and is expected to be neutral to cash per-share earnings in fiscal 2019. Shares of Blue Buffalo jumped 17% in premarket trade Friday. "The $30 billion U.S. pet food market is generating consistent 3%-4% growth and is highly attractive for retailers," General Mills said in a statement. Blue Buffalo makes natural food and treats for dogs and cats. "The wholesome natural market represents approximately 10% of the pet food market in volume and approximately 20% in value," said General Mills. The deal is expected to close by the end of the General Mills's fiscal 2018.
Shares of General Mills and other food makers were slammed after the company warned of higher costs.
General Mills will raise prices on some of its packaged foods as higher ingredient and shipping costs cut into profitability.
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General Mills shares hit a new multiyear low after its "disappointing" fiscal third-quarter earnings report and guidance.
Shares of General Mills and other food makers were slammed after the company warned of higher costs.
General Mills will raise prices on some of its packaged foods as higher ingredient and shipping costs cut into profitability.
Although General Mills (GIS) meets Q3 earnings expectation, it cuts its yearly earnings forecast due to a sharp increase in freight and commodity costs, driving its shares down 8% in pre-market trading.
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General Mills (GIS) reported fiscal third quarter adjusted earnings of 79 cents per share, in line with the Zacks Consensus Estimate.
General Mills -6% after guiding 2018 earnings below consensus
Thousands of food-company executives, retail giants and potential investors are gathering in California this week to answer an increasingly elusive question: What’s the next eating trend?
General Mills deal for Blue Buffalo cleared by FTC
Lower volume and higher input costs might offset the benefits of General Mills' (GIS) cost-saving plans in the third quarter of fiscal 2018. However, margins are likely to improve sequentially.
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Analysts expect Conagra Brands to report an adjusted EPS (earnings per share) of $0.55—up 14.6% on a YoY (year-over-year) basis.
Conagra Brands is slated to announce its fiscal 3Q18 results on March 22. Analysts expect the company’s top and bottom line to improve YoY.
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General Mills, Inc. engages in the manufacture and marketing of branded consumer foods sold through retail stores. It operates through the following segments: North America Retail, Convenience Stores and Foodservice, Europe and Australia, and Asia and Latin America. The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers. The Convenience Stores and Foodservice segment consists of ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes. The Europe and Australia segment includes retails, foodservice businesses in the greater Europe and Australian region. The Asia and Latin America segment comprises of products manufactured in the United States for export, mainly to Caribbean and Latin American markets. The company was founded by Cadwallader C. Washburn in 1866 and is headquartered in Minneapolis, MN. (See Full Profile)
Name | Chg % | Market Cap |
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Hain Celestial Group Inc. | $3.49B | |
Standard Foods Corp. GDR 144A | $2.12B | |
Conagra Brands Inc. | $14.59B | |
Kellogg Co. | $22.99B | |
J.M. Smucker Co. | $14.25B |