Higher Costs Eat into General Mills’ Q2 Earnings (GIS)

By
A A A
Share |

Packaged foods maker General Mills, Inc. ( GIS ) on Tuesday said its fiscal second quarter earnings plunged 28% from last year due to higher input costs.

The Minneapolis-based company reported fiscal second quarter net income of $444.8 million, or 67 cents per share, compared with $613.9 million, or 92 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 76 cents per share.

Sales rose 14% from last year to $4.62 billion, as the company was able to partially offset higher costs by raising prices on key products.

On average, Wall Street analysts expected a higher profit of 79 cents per share, albeit on slightly lower revenue of $4.6 billion.

Looking ahead, GIS reaffirmed its full-year 2012 earnings outlook for profits of $2.59 to $2.61 per share, excluding items, while analysts are looking for $2.61 per share.

General Mills shares fell $1.24, or -3.1%, in premarket trading Tuesday.

The Bottom Line
Shares of General Mills ( GIS ) have a 3.08% dividend yield, based on last night's closing stock price of $39.59. The stock has technical support in the $37-$38 price area. The shares are trading near all-time highs and have little overhead resistance.

General Mills, Inc. ( GIS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



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.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: GIS

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

ColonialMills_USETBASITE
ColonialMills_USETBASITE            

Stocks

Referenced

75%

Most Active by Volume

72,907,469
  • $74.005 ▼ 2.45%
69,133,686
  • $9.45 ▼ 5.50%
55,739,996
  • $17.005 ▲ 0.09%
40,314,251
  • $32.55 ▼ 4.04%
38,351,930
  • $41.64 ▼ 1.05%
36,676,436
  • $11.43 ▲ 1.96%
32,626,325
  • $9.8201 ▼ 10.40%
30,939,691
  • $4.56 ▼ 15.24%
As of 10/30/2014, 03:12 PM

Find a Credit Card

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