We expect consumer food giant,
General Mills Inc.
) to beat expectations when it reports third-quarter fiscal 2013
results on Mar 20 before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that General Mills is likely to beat
earnings because it has the right combination of 2 key
Positive Zacks ESP:
Earnings Expected Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
), the difference between the Most Accurate Estimate of 58 cents
and the Zacks Consensus Estimate of 57 cents, stands at
Zacks #3 Rank (Hold):
General Mills currently carries a Zacks Rank # 3
(Hold). Note that stocks with Zacks Ranks of #1, #2 and #3
have a significantly higher chance of beating earnings. The sell
rated stocks (#4 and #5) should never be considered going into an
The combination of General Mills' Zacks Rank #3 (Hold) and
+1.75% ESP makes us confident of a positive earnings beat on Mar
What is Driving the Better Than Expected Earnings?
Recent strategic acquisitions, better-than-expected sales and
profits in the U.S. retail business, increased innovation and
brand support, and productivity gains and cost savings are
expected to boost earnings for General Mills. However, higher
commodity inflation and a higher (than first half) tax rate may
prove to be the headwinds.
Other Stocks to Consider
General Mills is not the only bullish firm this earnings
season. We also see likely earnings beats coming from the
following consumer staples companies:
Kraft Foods Group, Inc.
): Earnings ESP of +1.56% and Zacks Rank #2 (Buy).
The Hershey Company
): Earnings ESP of +4.76% and Zacks Rank #2 (Buy).
The Chefs' Warehouse, Inc.
): Earnings ESP of +7.14% and Zacks Rank #3 (Hold).
CHEFS WAREHOUSE (CHEF): Free Stock Analysis
GENL MILLS (GIS): Free Stock Analysis Report
HERSHEY CO/THE (HSY): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
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