Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Investing.com -- General Mills Inc. reported third-quarter earnings that beat expectations but saw its shares drop 3.7% after revenue fell short of analyst estimates, reflecting inventory reductions and a slowdown in snacking categories.
The food manufacturer posted adjusted earnings per share of $1.00 for the quarter ended February 25, surpassing the analyst consensus of $0.98. However, revenue came in at $4.8 billion, below the $4.99 billion analysts had projected.
Organic net sales declined 5% YoY, including approximately 4 percentage points of headwinds from retailer inventory reductions and the expected reversal of certain second-quarter favorable timing items.
"Our third-quarter organic net sales finished below our expectations, driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories," said General Mills (NYSE:GIS) Chairman and CEO Jeff Harmening.
The company’s North America Retail segment, its largest business unit, saw net sales fall 7% to $3.0 billion.
General Mills lowered its full-year fiscal 2025 outlook, now expecting organic net sales to decline 2% to 1.5% compared to its previous forecast of flat to up 1%. The company also revised its adjusted operating profit and adjusted EPS guidance to a decline of 8% to 7% in constant currency, down from its prior range of a 4% to 2% decrease.
Looking ahead to fiscal 2026, Harmening stated, "We’re focused on improving our sales growth in fiscal 2026 by stepping up our investment in innovation, brand communication, and value for consumers."