General Mills Earnings Forecast Shows Decrease Ahead

A recent report highlights that General Mills, Inc. is set to report its earnings soon, with a forecasted EPS of $1.05, reflecting a 3.67% decrease year-over-year. Despite consistent prior performance exceeding expectations, this decline may weigh on investor sentiment.

Date: 20-09-2024

AI Rating: 4

General Mills, Inc. is forecasted to report earnings of $1.05 per share for the quarter ending August 31, 2024, according to the consensus from 8 analysts. This forecast indicates a 3.67% decline compared to the same quarter last year, which poses a concern for investors as it implies a potential decrease in profitability.

Despite the anticipated drop, it is noteworthy that General Mills has surpassed expectations in every quarter over the past year. This includes a significant 2.02% beat in the 2nd calendar quarter, showcasing the company's ability to outperform its previous forecasts. However, the negative shift in the upcoming EPS could be interpreted as a warning sign, potentially leading to a reevaluation of the stock’s valuation by investors.

The Price to Earnings (P/E) ratio for General Mills for 2025 is reported at 16.66, considerably lower than the industry average of 25.30. This could suggest that General Mills is relatively undervalued compared to its peers, despite current concerns regarding earnings. Such a lower P/E ratio might attract value investors looking for opportunities, although the downward EPS trend could temper enthusiasm in the short term.

Stocks: GIS