General Mills Inc.
), a global consumer food company, is set to report fourth
quarter and fiscal year 2013 results on Jun 26. Last quarter, it
posted a 12.28% positive surprise. Let's see how things are
shaping up for this announcement.
Factors to Consider this Quarter
General Mill's fourth-quarter 2013 earnings outlook is quite
weak with costs and taxes anticipated to rise. General Mills
expects fourth-quarter earnings to decline from the comparable
quarter last year, which witnessed 15% earnings growth due to
higher supply chain costs, increased spending to support in-store
merchandising and a higher tax rate.
Most of the estimates have been trending downwards, as a result
of the expected decline in earnings in fourth quarter 2013.
Our proven model does not conclusively show that General Mills
is likely to beat earnings this quarter. That is because a stock
needs to have both a positive earnings expected surprise
prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
General Mills currently has an ESP of -1.85%.
Zacks Rank #3 (Hold)
. General Mills' Zacks Rank #3 (Hold) lowers the predictive power
of ESP because the Zacks Rank #3 when combined with a negative
ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
Other Stocks to Consider
We also see likely earnings beats coming from these 3
companies from the same industry:
CHIQUITA BR INT (CQB): Free Stock Analysis
DIAMOND FOODS (DMND): Free Stock Analysis
DOLE FOOD CO (DOLE): Free Stock Analysis
GENL MILLS (GIS): Free Stock Analysis Report
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Chiquita Brands International Inc.
), Earnings ESP of +26.83% and Zacks Rank #3 (Hold)
Diamond Foods, Inc.
), Earnings ESP of +33.33% and Zacks Rank #3 (Hold)
Dole Food Company Inc.
), Earnings ESP of +9.09% and Zacks Rank #3 (Hold)