Post-Earnings Report - General Mills

LONDON, January 8, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings report on General Mills Inc. (NYSE: GIS). On December 17, 2014, the company reported its financial results for Q2 FY15 (period ended November 23, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on General Mills Inc. (General Mills). During Q2 FY15, the company's net sales fell by 3% Y-o-Y, with segment operating profit down by 8% Y-o-Y. Chairman and CEO at General Mills, Kendall (Ken) J. Powell said that the company's Q2 FY15 results were broadly in line with the updated outlook provided in early November. He added that the decline in Q2 FY15 net sales was as anticipated and it reflects continued weakness in the U.S. food-industry trends and slowing of growth in key emerging markets. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q2 FY15, General Mills' net sales decreased to $4.71 billion from $4.88 billion in Q2 FY14. On a constant-currency basis, net sales declined 1% Y-o-Y. The company's reported quarter net sales trailed Bloomberg analysts' forecasts of $4.78 billion. General Mills' US Retail segment net sales declined 3.5% Y-o-Y to $2.86 billion in Q2 FY15. The company's reported Q2 FY15 consolidated international businesses net sales also fell 5.9% Y-o-Y to $1.32 billion, while Convenience Stores and Foodservice segment net sales grew 4.4% Y-o-Y to $0.53 billion. The free research on GIS can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=General%20Mills&d=08-Jan-2015&s=GIS

For Q2 FY15, General Mills' segment operating profit totaled $846.6 million compared with $919.7 million in Q2 FY14. Net earnings attributable to General Mills declined to $346.1 million, or $0.56 per diluted share, during Q2 FY15, from $549.9 million, or $0.84 per diluted share, in Q2 FY14. Analysts from Bloomberg were expecting the company to report net earnings attributable to General Mills of $470.3 million, or $0.76 per diluted share, in Q2 FY15. The company reported adjusted diluted EPS of $0.80 compared to $0.83 in Q2 FY14. Mr. Powell stated that the company's adjusted diluted EPS came in slightly better than the estimate, primarily due to differences in expense timing.

For H1 FY15, the company's net sales declined 3% Y-o-Y to $8.98 billion. On a constant-currency basis, net sales in H1 FY15 fell 1% Y-o-Y. General Mills' segment operating profit for H1 FY15 totaled $1.54 billion, down 11% Y-o-Y as reported and down 10% Y-o-Y in constant currency. In H1 FY15, the company's diluted EPS stood at $1.11 compared to $1.54 in H1 FY14. Moreover, General Mills' adjusted diluted EPS totaled $1.41 in H1 FY15 compared to $1.53 in H1 FY14. Sign up and read the free analyst's notes on GIS at:

http://get.Investor-Edge.com/pdf/?c=General%20Mills&d=08-Jan-2015&s=GIS

Commenting on the outlook, Mr. Powell stated that the operating environment remains challenging but the company expects to renew its sales and profit growth in the second half of FY15. General Mills reiterated its growth targets for full-year FY 15, and expects net sales in constant currency to grow at a low-single-digit rate from the 2014 base of $17.9 billion, including an estimated 2 points of sales growth from the 53rd week in FY15 and approximately $120 million of incremental sales from Annie's acquisition. Further, the company anticipates its adjusted diluted EPS to grow at a low single-digit rate in constant currency from the base of $2.82 earned in fiscal 2014. At current exchange rates the company estimates a 5-cent EPS headwind from currency translation in 2015.

In H1 FY15, General Mills repurchased nearly 19 million shares of common stock for an aggregate purchase price of $969 million. Visit Investor-Edge and access the latest research on GIS at:

http://get.Investor-Edge.com/pdf/?c=General%20Mills&d=08-Jan-2015&s=GIS

Stock Performance 

On the day of earnings release, December 17, 2014, shares in General Mills gained 2.07% to end the session at $52.19. The stock has moved both ways since then with gains outweighing losses so far. On the last close, Wednesday, January 07, 2014, the stock finished 2.11% higher at $53.12, after vacillating between $52.37 and $53.26. A total of 3.20 million shares were traded, which was above its three months average volume of 2.88 million shares. Over the previous three trading sessions and over the last three months, General Mills' shares have advanced 0.02% and 5.86%, respectively. Further, the stock has gained 6.56% in the past one year. Shares in General Mills closed above their 50-day and 200-day moving averages of $52.35 and $52.44, respectively. Furthermore, the stock traded at a PE ratio of 19.99 and has a Relative Strength Index (RSI) of 41.55.

Sneak Peek to Corporate Insider Trading  

In the last one month, General Mills has reported 4 trading transactions by 2 insiders. On December 22, 2014, a total of 129,525 shares of the company have been purchased at an average price of $23.49 per share, for a total value of $3.04 million. On the same day, a total of 99,177 shares were disposed at an average price of $54.27 per share, for a total of $5.38 million. On December 22, 2014, Kendall J. Powell purchased 103,125 shares at $23.49 per share and sold 72,777 shares at $54.38 per share. On the stated day, Peter C. Erickson, Executive Vice President- Innovation, Technology and Quality at General Mills, also bought 26,400 shares at $23.49 per share and sold an equal number of shares at $53.96 per share. Complimentary in-depth research on GIS is available at:

http://get.Investor-Edge.com/pdf/?c=General%20Mills&d=08-Jan-2015&s=GIS

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

===============

EDITOR'S NOTES:

===============

1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] http://www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] http://www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] http://www.investor-edge.com for consideration.

COMPLIANCE PROCEDURE

Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.

NOT FINANCIAL ADVICE

Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.

NO WARRANTY OR LIABILITY ASSUMED

Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE Investor-Edge