Shares of General Mills (GIS) surged 1.50% during pre-market trading, after the company reported better-than-expected earnings during Q4 2018, aided by its cost-cutting initiatives. The company’s earnings fell to $0.59 per share from $0.69 per share a year earlier. Excluding items, General Mills earned $0.79 per share, beating analysts estimate of $0.72 per share.
The Cheerios cereal maker reported revenue of $3.89 billion, up 2.1% and in line with analysts expectation. While sales in the North America Retail segment remained flat at $2.39 billion, net sales at its smaller Convenience Stores & Foodservice segment increased 5% to $511 million, helped by growth in frozen meals and snacks. Favorable foreign currency exchange pushed net sales for the Europe & Australia segment up 14% to $556 million.
General Mills entered the pet food category this year with the acquisition of Blue Buffalo for $8 billion in April. According to General Mills, the newly acquired company will be reported as a new Pet operating segment. As a result, the fiscal 2018 financial results do not include Pet segment results.
“We made significant progress toward competing more effectively this year, with strong innovation, marketing, and in-store execution driving positive organic sales growth in each of our last three quarters. And we moved to reshape our portfolio for future growth with the acquisition of Blue Buffalo, a fast-growing, highly profitable business that is leading the transformation of the U.S. pet food category,” CEO Jeff Harmening.
For fiscal 2019, the company expects organic net sales to be flat to 1% higher. Including the impact of the Blue Buffalo acquisition, net sales are expected to increase 9-10%. Adjusted EPS is expected to range between 0% and negative 3%.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,