Key Takeaways
- General Mills shares fell Wednesday after the company lowered its fiscal 2025 adjusted profit outlook.
- Second-quarter sales and net income rose year-over-year and beat analysts’ expectations.
- The snack and cereal maker expects adjusted profit to decline from last year because of increased investments.
General Mills (GIS) shares moved lower Wednesday morning after the company lowered its fiscal 2025 adjusted profit outlook, offsetting second-quarter results that beat analysts’ estimates.
The snack and cereal maker recorded $5.24 billion in revenue, up 2% year-over-year and above the $5.14 billion that analysts had expected, per Visible Alpha. General Mills’ net income was $795.7 million, up 34% and well above the projected $683.3 million.
General Mills lowered its fiscal 2025 adjusted earnings per share (EPS) forecast to between down 3% to down 1% in constant-currency terms from fiscal 2024 levels. Previously, it projected adjusted EPS from down 1% to up 1%.
The company now expects full-year organic net sales growth at the lower end of its previously reported range of flat to up 1% “due to increased promotional investment.”
General Mills shares fell about 4% soon after the opening bell Wednesday to move into negative territory for 2024.
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