Here’s what analysts expect
General Mills (GIS) is slated to announce its fiscal 3Q18 earnings on Wednesday, March 21. Analysts expect General Mills to report adjusted earnings of $0.78 per share, up 8.3% on a YoY (year-over-year) basis. General Mills’ bottom line fell in the past two quarters as inflation in input costs and higher freight weighed on its margins. However, the company’s management stated that it expects margin headwinds to subside in 2H18, which is likely to support its EPS (earnings per share) growth.
What could drive General Mills’ Q3 EPS?
General Mills’ bottom line is expected to benefit from higher cost savings and favorable currency trends. Management expects margin headwinds to subside, which should boost earnings growth. Moreover, the anticipated decline in tax rates and a lower outstanding share count should further support the company’s EPS.
In comparison, analysts expect Conagra Brands (CAG) to report double-digit EPS growth in fiscal 3Q18. Improved sales and cost control measures are likely to support the company’s bottom-line growth. Moreover, other major packaged food manufacturers also reported improved their bottom-line performance during their last reported quarters, thanks to increased cost and productivity savings. The Kellogg Company’s (K) 4Q17 EPS increased 5.5% on a YoY basis, reflecting benefits from cost saving initiatives. Meanwhile, Mondelēz (MDLZ) and J. M. Smucker’s (SJM) also marked healthy earnings growth, driven by improvements in their top lines and higher cost savings. However, higher manufacturing and transportation costs and investments to support new product launches remained a drag.