Expected fiscal 2Q16 earnings
General Mills (GIS) will report its fiscal 2Q16 performance results on December 17, 2015. Its brands include Cheerios, Fiber One, Haagen-Dazs, Nature Valley, Yoplait, Betty Crocker, Pillsbury, Old El Paso, Wanchai Ferry, and Yoki.
Stock performance since last quarter
The company’s stock only rose by ~1% and closed at $57.13 on September 22 after the quarter earnings were released for 1Q16—despite an impressive quarter. Since then, the stock has been rising. It traded between $55 and $58 in the past month. Before the earnings release, the company announced its definitive agreement to sell its Green Giant and Le Sueur vegetable businesses to B&G Foods. The stock reacted positively to this news and rose by ~2%. However, there weren’t many fluctuations in the stock price last month. The stock gained as much as 10% this calendar year. However, looking at the company’s strong performance, cost-saving initiatives, consistent dividend, and operating margins we can expect the stock to continue to rise as the company expands.
Peers in the industry
General Mills is part of the processed and packaged goods industry. Its main peers in the industry are B&G Foods (BGS), Tyson Foods (TSN), and Campbell Soup Company (CPB). They closed at $34.49, $52.52, and $53, respectively, on December 11. B&G Foods reported its fiscal 3Q15 earnings on October 28. Tyson reported it fiscal 4Q15 results on November 23. Campbell Soup reported its fiscal 1Q16 results one day after Tyson.
The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) has 3% of its portfolio in General Mills stock. RHS also invests 2.5% in Campbell Soup and 2.6% in Tyson Foods. It closed at $113.75 as of December 11, respectively. The Consumer Staples Select Sector SPDR Fund (XLP) also invests 1.9% of its total portfolio in General Mills.
In this series we’ll discuss General Mills and its peers’ moving averages, the company’s performance in fiscal 1Q16, its restructuring initiatives, and its recent dividend. We’ll also discuss the Green Giant divestiture.