The stock of General Mills (GIS) is down about 5% after the U.S. food company lowered its
sales guidance for the remainder of its current fiscal year.
The maker of Cheerios and other cereals reported earnings per share (EPS) of $1.25 U.S. for what was its fiscal second quarter. That beat Wall Street forecasts of $1.16 U.S. a share.
Revenue in fiscal Q2 came in at $5.14 billion U.S., which was below expectations of $5.35 billion U.S.
In terms of guidance, General Mills said that it now expects sales of down 1% to flat. Previously, the company had forecast 3% to 4% growth for the entire fiscal year.
The company also lowered its EPS guidance to growth in a range of 4% to 5%, which is down from 4% to 6% growth that was earlier forecast.
General Mills blamed the fiscal Q2 revenue miss and reduced outlook on weak consumer spending that has led to “…lower organic sales growth.”
Before today (Dec. 20), the stock of General Mills had fallen 20% in 2023 to trade at $66.71 U.S. per share.
