General Mills, Inc (NYSE: $GIS) Set to Report Q3 Earnings TodayGeneral Mills, Inc. (NYSE: NYSE:GIS ) manufactures and markets branded consumer foods worldwide is set to report Third Quarter Earnings results today before market opens. With shares moderately up 0.85% in Wednesday's premarket trading.
Founded in 1866 and headquartered in Minneapolis, Minnesota. The company operates through four segments: North America Retail; International; Pet; and North America Foodservice.
Financial Performance
In 2024, General Mills's revenue was $19.86 billion, a decrease of -1.18% compared to the previous year's $20.09 billion. Earnings were $2.50 billion, a decrease of -3.75%. As investors awaits for the earnings reports NYSE:GIS shares are also waiting for build up momentum to surge breaking above the 1-month high acting as resistant point.
Similarly, should NYSE:GIS faced selling pressure, the 65% Fibonacci retracement level acting as support point would broken leading to consolidatory move to the 1-month low albeit the stock is still bearish at the moment with only Gold surging to new All time high yesterday.
Analyst Forecast
According to 17 analysts, the average rating for GIS stock is "Hold." The 12-month stock price forecast is $66.13, which is an increase of 9.41% from the latest price.
GIS trade ideas
Robert F. Kennedy Jr.โs Impact on Food IndustryThe same man who set pharmaceuticals dancing is now turning his attention to the food industry. Robert F. Kennedy Jr, head of the U.S. Department of Health, will meet today with top executives from General Mills (Ticker AT:GIS.US) and PepsiCo (Ticker AT:PEP.US), according to Politico. Pushed by the White House, this meeting aims to discuss the elimination of additives and ultra-processed products in schools, which could trigger significant regulatory changes in an industry already under pressure from rising raw material costs and demand for healthier products.
General Mills and PepsiCo: Two models of success
General Mills, founded in 1866, has a broad portfolio spanning cereals, baked goods, dairy and snacks. Iconic brands such as Cheerios, Haagen-Dazs and Yoplait attest to its commitment to sustainability and response to the growing demand for organic and lower-sugar foods. Its expansion into emerging markets has been key to its growth.
PepsiCo stands out as one of the largest food and beverage multinationals, with recognized brands such as Pepsi, Lay's, Gatorade, Quaker and Tropicana. Its innovation strategy, based on vertical integration and the acquisition of emerging functional food companies, has strengthened its global position and its commitment to healthier options.
Market Reactions and Stock Performance
Today's meeting could cause volatility in the stock market. The possibility of new food regulations may lead both companies to reformulate their flagship products, affecting margins and creating opportunities for competitors with more natural alternatives.
In the case of General Mills, the chart shows an upward trajectory until May 2023, followed by a correction towards the $60 area, considered a checkpoint, from its highs of $90.89. PepsiCo, on the other hand, experienced a similar development: a rise until May 2023, a pullback towards an accumulation zone around $168.66 and a recovery attempt in February. The RSI for both is in a neutral zone, reflecting a balance between buying and selling pressure.
Future outlook
Beyond the meeting, General Mills and PepsiCo continue to adapt to a market where demand for less processed and healthier products is steadily growing. However, regulatory pressure could accelerate the transformation of their product portfolios. Investors will be watching for post-meeting statements, as any concrete action could decisively influence their stock performance and redefine the FMCG landscape.
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GENERAL MILLS Stock Chart Fibonacci Analysis 022325Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 57/61.80%
Chart time frame: D
A) 15 min(1W-3M)
B) 1 hr(3M-6M)
C) 4 hr(6M-1year)
D) 1 day(1-3years)
Stock progress: A
A) Keep rising over 61.80% resistance
B) 61.80% resistance
C) 61.80% support
D) Hit the bottom
E) Hit the top
Stocks rise as they rise from support and fall from resistance. Our goal is to find a low support point and enter. It can be referred to as buying at the pullback point. The pullback point can be found with a Fibonacci extension of 61.80%. This is a step to find entry level. 1) Find a triangle (Fibonacci Speed Fan Line) that connects the high (resistance) and low (support) points of the stock in progress, where it is continuously expressed as a Slingshot, 2) and create a Fibonacci extension level for the first rising wave from the start point of slingshot pattern.
When the current price goes over 61.80% level , that can be a good entry point, especially if the SMA 100 and 200 curves are gathered together at 61.80%, it is a very good entry point.
As a great help, tradingview provides these Fibonacci speed fan lines and extension levels with ease. So if you use the Fibonacci fan line, the extension level, and the SMA 100/200 curve well, you can find an entry point for the stock market. At least you have to enter at this low point to avoid trading failure, and if you are skilled at entering this low point, with fibonacci6180 technique, your reading skill to chart will be greatly improved.
If you want to do day trading, please set the time frame to 5 minutes or 15 minutes, and you will see many of the low point of rising stocks.
If want to prefer long term range trading, you can set the time frame to 1 hr or 1 day.
GIS to $60My trading plan is very simple.
I buy or sell when price tags the top or bottom of parallel channels.
I confirm when price hits Fibonacci levels.
So...
Here's why I'm picking this symbol to do the thing.
Price at bottom of channels (period 52 39 & 26)
Stochastic Momentum Index (SMI) at oversold level
VBSM is spiked negative and at bottom of Bollinger Band
Entry at $58.25
Target is $60 or channel top
GIS General Mills Options Ahead of EarningsIf you haven`t sold GIS before the previous earnings:
Now analyzing the options chain and the chart patterns of GIS General Mills prior to the earnings report this week,
I would consider purchasing the 57.5usd strike price Puts with
an expiration date of 2025-9-19,
for a premium of approximately $1.92.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
General Mills (GIS) Earnings: Key Insights and Market ImpactGeneral Mills (NYSE: NYSE:GIS ) is set to announce its earnings results today, September 18, 2024, before the market opens. As one of the largest packaged food companies, investors and analysts are keen to see how the company performed in a challenging economic environment, especially after its recent earnings miss.
Overview
In the previous quarter, General Mills (NYSE: NYSE:GIS ) missed analysts' revenue expectations by 3%, reporting revenues of $4.71 billion, down 6.3% year over year. This was a notable drop, given the companyโs traditionally stable performance in the consumer staples sector. Additionally, analysts have forecasted that this quarterโs revenue will decline by 2.1%, which is a reversal from the 4% increase seen in the same period last year. Adjusted earnings per share are expected to be $1.06.
One of the key takeaways from recent earnings is General Millsโ struggle to maintain sales momentum, particularly as the company saw a 1% drop in organic net sales. CEO Jeff Harmening cited that challenging consumer sentiment and inflationary pressuresโespecially in labor, sourcing, and logistics costsโhave impacted their performance. Inflation remains a critical concern, contributing to higher input costs across the board.
While the company faces headwinds, there are still significant opportunities for growth. General Mills (NYSE: NYSE:GIS ) has demonstrated strong financial health, with a robust free cash flow of over $2.5 billion and an impressive 96% conversion rate. The companyโs focus on cost savings through holistic margin management (HMM) in fiscal 2025 should provide more room for reinvestment in growth initiatives, potentially bolstering sales.
Moreover, General Mills (NYSE: NYSE:GIS ) is actively positioning itself for the future with innovation, particularly with a 40% increase in โbig betโ product launches that have strengthened its market position. Initiatives like a renewed focus on sustainability, regenerative agriculture, and recyclable packaging are expected to drive long-term value. Despite these growth strategies, the company is currently undervalued, trading at a Price-to-Earnings (P/E) ratio of 16.4x, significantly below both its peers (26.7x) and the industry average (19.6x). However, the companyโs negative earnings growth (-3.9%) over the past year highlights the challenges it faces in an increasingly competitive industry.
Key Strengths and Weaknesses
- Strengths: Strong free cash flow, financial agility, undervaluation relative to peers, and ongoing innovation.
- Weaknesses: Declining organic sales, inflationary pressures, and weaker earnings growth compared to industry averages.
Opportunities for Growth
General Mills (NYSE: NYSE:GIS ) is focused on driving margin improvements in fiscal 2025, especially by reinvesting in growth opportunities aimed at creating remarkable consumer experiences. The companyโs focus on iconic brands like the Pillsbury Doughboy and family-centered marketing campaigns could accelerate organic sales growth. The company also continues to invest in sustainability, which could help differentiate it from competitors in a market where consumers are increasingly environmentally conscious.
Threats and Risks
The major risks for General Mills (NYSE: NYSE:GIS ) remain tied to macroeconomic conditions. With continued uncertainty, consumers are likely to engage in value-seeking behavior, which could pressure the companyโs pricing strategies and margins. Additionally, smaller competitors and private labels pose an increasing threat to General Mills' market share. Regulatory challenges and potential inflation-driven cost increases (expected to be 3% to 4% of cost of goods sold) could also affect the companyโs bottom line.
Technical Outlook
From a technical perspective, General Mills (NYSE: NYSE:GIS ) is currently in a critical position. As of this morning's premarket trading, the stock is down 0.60%, and the daily chart suggests the formation of a falling wedge pattern, which often signals a bearish reversal. This pattern will be confirmed or denied once General Mills releases its earnings report before the market opens. The RSI (Relative Strength Index) is sitting at 66.62, close to overbought territory, but it may signal a fakeout rather than a clear indicator of a bullish continuation.
If the earnings surprise positively, the stock could break out of the wedge and rise further, driven by renewed investor confidence. Conversely, any disappointment in todayโs earnings report could lead to further declines in the stock price. Given the stockโs recent 6.9% increase in share price over the last month, investors will be closely watching todayโs report to determine whether General Mills (NYSE: NYSE:GIS ) can sustain its growth trajectory or if the challenges will weigh more heavily on its stock performance.
Conclusion
General Mills (NYSE: NYSE:GIS ) is at a pivotal moment, both fundamentally and technically. While the company has a proven track record of financial health and innovation, its recent struggles with inflation and organic sales growth could be significant barriers to further success. Investors will be watching closely to see how the company navigates these challenges and whether today's earnings report will provide the catalyst for a continued upward trend or signal further headwinds.
GIS General Mills Options Ahead of EarningsIf you didnโt short GIS before the selloff:
Now analyzing the options chain and the chart patterns of GIS General Mills prior to the earnings report this week,
I would consider purchasing the 72.5usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $0.85.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
GIS - Conservative Income PlayGeneral Mills has been gaining a bit of strength crossing above it's 20 week moving average. Volatility is dead flat.
Transacting a June 25 67.5 buy/write, in addition to a 3.5% dividend results in this play producing in annualized rate of return in excess of 12%.
I do this kind of strategy in a qualified account as dividends received in a buy/write transaction may not be considered qualified dividends. Be sure to seek the advice of an investment adviser before trading any of my ideas.
GIS General Mills Options Ahead of EarningsIf you haven`t sold GIS before the previous earnings:
Now analyzing the options chain and the chart patterns of GIS General Mills prior to the earnings report this week,
I would consider purchasing the 67.50usd strike price Puts with
an expiration date of 2024-7-19,
for a premium of approximately $2.02.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
GIS weekly Cup formation progress LONGGIS a consumer staples is set up long and is a good defensive play for recession or black swan
events. The idea is on the chart. I am long since the first of the year. Adding for small dips
on the daily or 180 minute chart. Food is about as basic as it gets. GIS is a market leader.
TSN idea also. What about McDonalds?
General Mills Rides Price Hikes to Beat Quarterly EstimatesGeneral Mills ( NYSE:GIS ), the iconic maker of Cheerios and a wide array of pantry staples, has once again exceeded market expectations in its third-quarter earnings report, buoyed by strategic price adjustments across its product portfolio. Despite challenges stemming from inflation and shifting consumer preferences, the Minnesota-based company's proactive approach to pricing has proven effective in maintaining profitability.
The company's decision to raise prices on breakfast cereals, snack bars, and pet food products has not only cushioned the impact of escalating labor and input costs but also contributed to a notable increase in gross margin. With a 7% surge in early trading following the earnings release, investors have expressed confidence in General Mills' ability to navigate the current economic landscape.
CEO Jeff Harmening acknowledges the evolving consumer behavior characterized by a preference for value-oriented purchases. However, Harmening remains optimistic, noting signs of inflation moderation and a reduction in supply chain disruptions, providing a glimmer of hope for sustained growth.
While General Mills' ( NYSE:GIS ) gross margin saw a significant boost to 33.5% year-on-year, quarterly volumes experienced a decline similar to industry peers like Kraft Heinz. Despite challenges in the pet food segment, attributed to shifting consumer preferences and retailer inventory adjustments, the company reported a modest improvement in retail sales for its Blue Buffalo brand.
Analysts, including Barclays' Andrew Lazar, note the positive trajectory in General Mills' pet business, signaling investor confidence in its long-term prospects. The company's quarterly net sales, while experiencing a slight dip of about 1% to $5.1 billion, outpaced analysts' expectations, showcasing the resilience of its pricing strategy.
With adjusted profits surpassing estimates at $1.17 per share, General Mills' performance underscores its ability to adapt to dynamic market conditions and deliver shareholder value. As consumers continue to navigate economic uncertainties, General Mills remains steadfast in its commitment to providing quality products while effectively managing costs.
GIS General Mills Options Ahead of EarningsIf you haven`t bought GIS before the rally:
nor sold the potential selloff:
Then analyzing the options chain and the chart patterns of GIS General Mills prior to the earnings report this week,
I would consider purchasing the 62.50usd strike price Puts with
an expiration date of 2024-4-19,
for a premium of approximately $0.60.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
#GIS#Comprehensive Analysis of General Mills, Inc. (GIS)
1. Current Status and Performance ๐
As of the most recent data, the current price of GIS is $65.18. Over the past 12 months, GIS has returned -17.05%, underperforming the SPY's performance of 13.09%. This performance has earned it a C (54.38%) for its Overall Grade.
2. Financials ๐ฐ
General Mills' financials reveal a revenue per share of 34.592 and a net income per share of 4.1743. The operating cash flow per share stands at 4.7209, while the free cash flow per share is 3.4582. The company's cash per share is 0.8372, and the book value per share is 17.5036. The company's debt to equity ratio is 1.1968, indicating a high level of debt relative to equity.
3. News and Market Sentiment ๐ฐ
Recent news stories from Zacks Investment Research highlight their commitment to independent research and sharing profitable discoveries. They emphasize their stock-ranking system, which has averaged a 23.96% annual gain since 1988, outperforming the S&P 500.
4. Earnings Report ๐ต
General Mills held a Q&A webcast on its third-quarter fiscal results for 2023. CEO Jeff Harmening reported that sales and margins in the pet food business were as anticipated, and profitability is expected to rise in the next quarter due to pricing tweaks and enhanced service levels. The company also reported a double-digit increase in marketing spending, which is expected to continue alongside sales growth. The company also anticipates mid-single-digit inflation in the next fiscal year due to labor and conversion costs. Despite potential inflationary risks, the company feels confident in its ability to navigate these due to its increased agility.
5. Future Outlook ๐
General Mills reported a 4% increase in net sales and organic net sales in Q1 of fiscal 2024, but operating profit decreased by 14% due to various factors. The company plans to drive organic net sales growth through marketing and innovation while managing input cost inflation and generating cost savings.
6. Conclusion ๐
General Mills appears to be in a challenging position, with a decrease in total comprehensive income and earnings per share in fiscal year 2023 compared to the previous two years. However, the company has various stock plans, pension plans, and other benefit plans. They have long-term debt and credit facilities available. General Mills has appointed KPMG LLP as their independent accounting firm and their financial statements show an increase in net sales. The company has made acquisitions and divestitures, incurred restructuring costs, and has investments in joint ventures. They manage market risks through derivatives and disclose information about leases and the carrying values of assets. Despite potential inflationary risks, the company feels confident in its ability to navigate these due to its increased agility. As with any investment, it's crucial to consider all factors and conduct thorough research before making a decision. It's also important to consider your own investment goals and risk tolerance.
GIS GENERAL MILLS oversold (Hedge against recession)Will update
Overview shows a similar pattern to the dot-com bubble where GIS acted as a strong hedge against the washup and the recession)
Its reputed as a 'boomer stock' that pays dividends
Beautiful trendline retracement (so far) and RSI reading is extremely oversold.
Worth taking a position, should pump to at least 70$ before any major further downside (which is highly doubt will happen here, but I can be wrong too).
Always practice Risk Management and trade safely.
Not Financial Advise.
Happy trading.
GIS General Mills Options Ahead of EarningsIf you haven`t bought GIS here:
or ahead of earnings here:
Nor sold it here:
Then analyzing the options chain and the chart patterns of GIS General Mills prior to the earnings report this week,
I would consider purchasing the 65usd strike price Puts with
an expiration date of 2023-10-20,
for a premium of approximately $1.52.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.