Packaged food supplier General Mills Inc. (GIS) is scheduled to report financial results for the fourth quarter on Tuesday, with analysts expecting the company to report a drop in profit from the year-ago quarter.
On average, 14 analysts polled by Thomson Reuters expect the company to report earnings of $0.41 per share in the fourth quarter with estimates ranging between $0.40 and $0.43 per share. The earnings estimate has been adjusted for the 2-for-1 stock split the company announced on May 3rd. Revenues for the quarter are estimated to be $3.55 billion. Analysts' estimates typically exclude special items.
On Monday, the company declared a 14% increase in the quarterly dividend rate to $0.28 per share, payable on August 2 to shareholders of record on July 12. The new annualized dividend rate of $1.12 per share represents a 17% increase over dividends of $0.96 per share paid in fiscal 2010.
The company also approved an authorization to repurchase up to 100 million common shares, replacing the previous repurchase authorization established in December 2006, with the current repurchase program having no expiration date.
For the year-ago quarter, the maker of Cheerios and Fiber One cereals reported net earnings of $358.8 million, while earnings per share on a split unadjusted basis were $1.07 per share. The results primarily reflected higher U.S. Retail net sales, and included gains from mark-to-market valuation on certain commodity positions. Excluding items, adjusted earnings on a split unadjusted basis rose 18% to $0.86 per share. Quarterly net sales increased 5% to $3.65 billion.
In the previous third quarter, the company reported a 15% year-over-year increase in profit to $332.5 million, boosted by higher net sales from its US retail and international segments. Adjusted earnings per share on a split unadjusted basis rose 23% to $0.97 per share from last year. Quarterly net sales grew 3% to $3.63 billion.
While announcing the third-quarter results, the company's Chairman and Chief Executive Officer Ken Powell said, "General Mills is on track to deliver excellent performance for the full 2010 fiscal year. As we move into the final quarter, our plans include strong levels of marketing reinvestment and targeted merchandising initiatives designed to fuel continuing growth for our brands in fiscal 2011."
At that time, the company also boosted its fiscal 2010 earnings forecast, before any mark-to-market effects, to range between $4.57 and $4.59 per share from its previous outlook of $4.52 to $4.57 per share. Analysts are currently looking for full-year 2010 earnings of $4.60 per share, on annual revenues of $14.78 billion.
Looking further ahead to 2011, the company said, ""As we look forward to fiscal 2011, we will be building on a solid foundation. Our market categories are growing. Our brand positions are strong, and we have a full line-up of product news and innovation planned for the new year. Most important, we are running on a strong and sustainable business model. This gives us confidence in our prospects for continuing growth."
Earlier this month, the company was a victim of a hoax, with a fake release posted and distributed via PR Newswire stating that U.S. President Barack Obama had ordered an investigation into the cereal maker's supply chain. The headlines and stories appeared briefly on newswires and those stories were retracted and removed when it was detected by the company. However, The hoax news did not have any effect on General Mill's stock.
Meanwhile, the company in early May declared a two-for-one split of General Mills common stock, being effected in the form of a 100% stock dividend, with shareholders receiving one additional share of General Mills stock for each share they own. The company said the action reflected its strong, long-term equity-market performance, current business momentum and promising growth prospects. It also reflected the company's commitment to maintain a market price range for its shares that is attractive to individual investors.
The Minneapolis, Minnesota-based company has a wide range of product lines, including ready-to-eat cereals, refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables, as well as various organic products. Like most packaged food companies, General Mills has also witnessed an improvement in sales, with the economic crisis having promoted the eat-at-home habit.
GIS closed Monday's regular trade $37.40, up $0.06 or 0.16% on a volume of 5.09 million shares, and added $0.35 or 0.94% in the extended trade. For the past 52-week period, the stock traded in the range of $27.51 to $38.98.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.