Trade with Eva: Analytics in action >>

Wednesday, March 21, 2018

=General Mills (GIS) reported earnings on Wed 21 March 18 (b/o)

General Mills beats by $0.01, reports revs in-line; guides FY18 EPS below consensus 
  • Reports Q3 (Feb) earnings of $0.79 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.78; revenues rose 2.3% year/year to $3.88 bln vs the $3.87 bln Capital IQ Consensus.
    • Adjusted operating profit margin decreased 120 basis points to 15.7 percent, primarily reflecting lower adjusted gross margin, partially offset by lower selling, general, & administrative expense (SG&A), including a 22 percent decrease in advertising and media expense.
  • Co issues downside guidance for FY18, sees EPS of $3.08-3.11, excluding non-recurring items, vs. $3.17 Capital IQ Consensus Estimate.
    • Organic net sales are expected to be in line with last year, which is unchanged from previous guidance. This represents a 400 basis point improvement over the fiscal 2017 growth rate.
    • Constant-currency total segment operating profit is now expected to decline 5-6 %, compared to the previous expectation of a range between down 1% and flat. The change in outlook was driven by higher-than-expected supply chain costs, including freight and logistics, commodities, and other operational costs
    • Constant-currency adj. EPS is now expected to range b/t flat and up 1% from the base of $3.08 earned in fiscal 2017, compared to the previous guidance of a 3-4% increase. The company now estimates currency translation will be a 3 cent benefit to FY 18 adj. EPS.

No comments:

Post a Comment