- General Mills tops analysts' estimates for earnings and revenue in the fourth quarter.
- The U.S. company reports a 21% increase in Q4 sales as COVID-19 fuels at-home dining.
- The American multinational refrains from giving future guidance due to COVID-19 uncertainty.
General Mills (NYSE: GIS) released its quarterly financial results on Wednesday that topped the analysts’ estimates for earnings and revenue in the fourth quarter. The company attributed its hawkish performance to the Coronavirus pandemic that restricted people to their homes and fuelled at-home dining.
Shares of the company were reported 1.7% up in premarket trading on Wednesday. At £50.57 per share, General Mills is currently a little under 20% up year to date in the stock market after recovering from a low of £38.10 per share in March. Learn more about how to invest in the stock market.
General Mills’ Q4 financial results versus analysts’ estimates
The American multinational company recorded its net income at £504.28 million in Q4 that translates to 82 pence per share. In the same quarter last year, General Mills had reported a lower £450.55 million in net income. The company partnered with Foremost Farms and Understanding AG to pilot regenerative dairy in Michigan in the third week of June.
According to FactSet, experts had forecast the company to print £4.02 billion in revenue in the fourth quarter. Their estimate for earnings per share was capped at 85 pence. In its report on Wednesday, General Mills topped both estimates posting a higher £4.05 billion in revenue and 89 pence of adjusted earnings per share in Q4.
The consumer foods company’s sales came in 21% higher on a year over year basis. According to General Mills:
“The COVID-19 pandemic has had a profound impact on consumer demand across the company’s major markets, including driving an unprecedented increase in demand for food at home and a corresponding decrease in away-from-home food demand resulting from efforts to reduce virus transmission.”
General Mills did not give guidance due to COVID-19 uncertainty
The increase in demand for at-home food, as per General Mills, was more prominent in North America while its impact on sales was less pronounced in Australia and Europe. The Minneapolis-based company also highlighted on Wednesday that its pet segment showed robust performance in Q4 as customers stockpiled to combat COVID-19 restrictions.
General Mills cited the rising Coronavirus uncertainty for not providing future guidance.
The U.S. company performed fairly upbeat in the stock market last year with an annual growth of more than 30%. At the time of writing, General Mills has a market cap of £30.12 billion and a price to earnings ratio of 17.73.