General Mills Reaches 52-Week High - Analyst Blog

By
A A A

General Mills Inc. ( GIS ) recently reached a 52-week high of $46.01 on Feb 25, 2013, on the back of solid second quarter 2013 results announced in December. Interestingly, the food giant announced an impressive guidance for fiscal 2014 last week.

Growth Drivers

General Mills reported second quarter 2013 results on Dec 19, 2012 with its top and bottom lines beating Zacks Consensus Estimates.

General Mills' second quarter fiscal 2013 adjusted earnings rose 13% year on year to 86 cents per share. The quarterly earnings comprehensively beat the Zacks Consensus Estimate of 79 cents. The upside was driven by recent acquisitions, better-than-expected sales and profits in the U.S. retail business and lower interest expenses and taxes.  

Total revenue of the global consumer food company increased 6% year over year to $4.88 billion. Revenues slivered past the Zacks Consensus Estimate of $4.87 billion. Revenues mostly benefited from recent acquisitions, mainly the purchases of Brazilian food maker Yoki Alimentos (in August this year) and Yoplait Canada. Sales were up 2% excluding the impact of the acquisitions.

In addition, General Mills recently reaffirmed its previously provided fiscal 2013 guidance at the CAGNY investor conference held in New York. The food giant expects growth in 2014 to be in line with its long-term goals.  

In fiscal 2014, General Mills intends to record strong earnings growth and increase cash returns to shareholders. Growth is expected to be in line with its long-term targets; high single-digit growth in earnings, low-single digit growth in net sales, and mid-single digit growth in segment operating profit.    

General Mills carries a Zacks Rank #3 (Hold).

Some stocks going strong in the food industry include ConAgra Foods, Inc ( CAG ), Flower Foods Inc. ( FLO ) and J&J Snack Foods Corp ( JJSF ), all carrying a Zacks Rank #1 (Strong Buy).



CONAGRA FOODS (CAG): Free Stock Analysis Report

FLOWERS FOODS (FLO): Free Stock Analysis Report

GENL MILLS (GIS): Free Stock Analysis Report

J&J SNACK FOODS (JJSF): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CAG , FLO , GIS , JJSF

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

270,887,127
    $93.89 unch
225,243,115
  • $40.93 ▼ 2.74%
135,900,109
  • $47.52 ▲ 1.80%
89,467,924
  • $5.35 ▼ 1.11%
85,105,358
  • $16.95 ▼ 0.53%
80,748,539
  • $39.80 ▼ 4.21%
68,491,586
  • $3.57 ▼ 1.79%
62,097,356
  • $100.96 ▼ 0.82%
As of 9/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com