Volume Recovery Slower Than Expected

  • General Mills stock falls 1.4% after revenue miss and lowered outlook
  • Fiscal Q2 profit beats expectations, but revenue falls short
  • Volume recovery slower than previously projected
  • Net income for the quarter was $595.5 million, or $1.02 a share
  • Adjusted earnings per share of $1.25 beat the consensus of $1.16
  • Sales declined 1.6% to $5.14 billion, missing the consensus of $5.35 billion
  • Organic sales for fiscal 2024 expected to be down 1% to flat, compared to previous guidance of 3% to 4%
  • General Mills stock has slumped 20.4% year to date

Shares of General Mills Inc. fell 1.4% in premarket trading after the company reported fiscal second-quarter profit that beat expectations, but revenue missed and the full-year outlook was lowered due to a slower-than-expected volume recovery. Net income for the quarter was $595.5 million, or $1.02 a share, compared to $605.9 million, or $1.01 a share, in the same period last year. Adjusted earnings per share of $1.25 exceeded the consensus of $1.16. However, sales declined 1.6% to $5.14 billion, falling short of the consensus of $5.35 billion. General Mills now expects organic sales for fiscal 2024 to be down 1% to flat, reflecting the slower volume recovery. The stock has slumped 20.4% year to date.

Public Companies: General Mills Inc. (GIS)
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Factuality Level: 8
Justification: The article provides specific information about General Mills’ fiscal second-quarter profit and revenue, as well as their full-year outlook. The information is based on the company’s official statements and includes comparisons to previous periods and consensus estimates. However, the article does not provide any analysis or context beyond the company’s own statements, which could limit the overall factuality level.

Noise Level: 3
Justification: The article provides relevant information about General Mills’ financial performance, including its profit, revenue, and outlook. It also mentions the company’s brands and compares its stock performance to relevant market indices. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on reporting the numbers without exploring the underlying factors or potential implications.

Financial Relevance: Yes
Financial Markets Impacted: Shares of General Mills Inc. (GIS)

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of General Mills Inc., a consumer-foods company. It discusses the company’s fiscal second-quarter profit, revenue, and full-year outlook. There is no mention of any extreme event.

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