General Mills, Inc. (GIS): Misses Where it Counts

General Mills, Inc. (NYSE:GIS) reported earnings on June 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 26 (Q4), General Mills, Inc. (NYSE:GIS) beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted. GAAP earnings per share expanded.

Gross margins contracted, operating margins shrank, net margins grew.

Revenue details
General Mills, Inc. (NYSE:GIS) reported revenue of $4.41 billion. The 14 analysts polled by S&P Capital IQ wanted to see sales of $4.32 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter’s $4.07 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.53. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. Non-GAAP EPS of $0.53 for Q4 were 12% lower than the prior-year quarter’s $0.60 per share. GAAP EPS of $0.55 for Q4 were 12% higher than the prior-year quarter’s $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 34.7%, 210 basis points worse than the prior-year quarter. Operating margin was 13.7%, 200 basis points worse than the prior-year quarter. Net margin was 8.3%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter’s average estimate for revenue is $4.31 billion. On the bottom line, the average EPS estimate is $0.70.

Next year’s average estimate for revenue is $18.32 billion. The average EPS estimate is $2.91.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,133 members out of 1,199 rating the stock outperform, and 66 members rating it underperform. Among 355 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 341 give General Mills, Inc. (NYSE:GIS) a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Mills is outperform, with an average price target of $49.65.

The article General Mills Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned.

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