- General Mills blows past Wall Street estimates in the fiscal first quarter.
- The U.S. multinational reports £3.42 billion in sales and 78 pence of EPS.
- General Mills' board declares 51 cents a share of quarterly dividend.
General Mills Inc. (NYSE: GIS) published its financial results for the fiscal first quarter on Wednesday that came in stronger than what the analysts had anticipated. On the back of its hawkish quarterly performance, General Mills also raised its dividend on Wednesday. The company said it is committed to reducing greenhouse gas (GHG) emissions by a minimum of 30% by 2030.
General Mills opened more than 1% up on Wednesday but gave up most of its intraday gain on market open. At a per-share price of £45.79, the stock is just over 10% up in the stock market in 2020 so far. In late March, shares of the company had tumbled to £37.09 per share due to COVID-19 disruptions. Interesting in investing in the stock market online? Here’s a simple guide to get you started.
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General Mills’ Q1 earnings report versus analysts’ estimates
According to FactSet, experts had forecast the company to print £3.31 billion in revenue in the first quarter. Their estimate for earnings per share was capped at 68.26 pence. In its report on Wednesday, General Mills topped both estimates posting a higher £3.42 billion in sales and 78 pence of adjusted earnings per share in Q1.
At £501.26 million, the American multinational said that its net income was higher than £408.44 million in the same quarter last year. In North America, General Mills added, sales from retail, pet and global segments were upbeat, offset by a decline in sales from stores and foodservice due to the COVID-19 crisis that restricted people from eating out.
The Minneapolis-based company’s board declared 51 cents a share of quarterly dividend on Wednesday that represents a 4% increase versus the comparable quarter of last year. General Mills acknowledged market uncertainty due to the Coronavirus pandemic as it refrained from giving its guidance for fiscal 2021.
CEO Jeff Harmening’s comments on Wednesday
CEO Jeff Harmening, however, said on Wednesday:
“I’m more confident than ever that General Mills is poised to emerge from the pandemic a stronger company and in a position to generate consistent, profitable growth and top-tier returns for our shareholders.”
In the prior quarter (Q4), General Mills had revealed a 21% annualised growth in sales, as per the report published in the first week of July.
At the time of writing, General Mills is valued at £27.94 billion and has a price to earnings ratio of 16.39.