Shares of consumer foods products provider General Mills (NYSE:GIS) are trending lower today after the company announced fourth-quarter numbers.
Revenue rose 2.9% year-over-year to $5.03 billion but landed short of expectations by $150 million. EPS at $1.12, on the other hand, outperformed estimates by about $0.06. During the quarter, organic net sales increased by 5% on the back of positive price realization and mix. At the same time, the gross margin dropped by 180 basis points to 34.4% owing to higher input costs and adverse mark-to-market effects.
During the year, General Mills bought back ~18 million shares worth $1.4 billion. Further, it has boosted its quarterly dividend by 9% to $0.59 per share. The dividend is payable on August 1 to investors of record on July 10.
Looking ahead, for the full-year 2024, organic net sales are anticipated to rise in the range of 3% to 4% alongside a 4% to 6% growth in adjusted operating profit. Adjusted EPS for the year is seen rising between 4% to 6% over this year’s mark of $4.30 per share.
Overall, the Street has an $84.25 consensus price target on GIS alongside a Hold consensus rating.
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