General Mills (NYSE: GIS), was in the red in morning trading on Tuesday even as the manufacturer and marketer of branded processed consumer foods announced strong fiscal Q2 results. The company posted net sales of $5.2 billion, up 4% year-over-year, beating Street expectations by $30 million.
Adjusted diluted earnings came in at $1.10 per share, up 12% year-over-year and surpassing analysts’ estimates of $1.07.
GIS also raised its FY23 outlook and now expects organic net sales to increase in the range of 8% to 9%, versus its prior expectation of 6% to 7% growth.
Adjusted diluted EPS is now forecasted to increase between 4% and 6% on a constant currency versus its previous range of 2% to 5%. This raised outlook “reflects stronger adjusted operating profit growth and higher net interest expense due to increasing rates.”
Analysts are sidelined about GIS stock with a Hold consensus rating based on two Buys, 10 Holds, and two Sells.