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General Mills Raises FY20 Earnings Targets - Quick Facts

General Mills (GIS) said, for fiscal 2020, the company now expects constant-currency adjusted earnings per share to increase 6 to 8 percent from the base of $3.22 earned in fiscal 2019, which is ahead of the previous guidance range of 3 to 5 percent growth. Constant-currency adjusted operating profit is now expected to increase 4 to 6 percent from the base of $2.86 billion reported in fiscal 2019, which is ahead of the prior range of 2 to 4 percent growth.

For fiscal 2020, General Mills still expects organic net sales to increase 1 to 2 percent. Reported net sales are anticipated to rise by approximately 1 percentage point.

For the fourth quarter of fiscal 2020, General Mills expects to see a step up in organic net sales growth.

Third-quarter adjusted earnings per share was $0.77, down 6 percent from the prior year in constant currency. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $0.76, for the quarter. Analysts' estimates typically exclude special items. Adjusted operating profit was $675 million, down 8 percent in constant currency, primarily driven by higher selling, general, and administrative expenses, including higher media investment.

Third-quarter net sales were $4.18 billion, flat with last year. Organic net sales were also flat to last year, with strong growth for the Pet segment largely offset
by declines in North America Retail and Convenience Stores & Foodservice. Analysts expected revenue of $4.21 billion for the quarter.

Shares of General Mills were down nearly 7% in pre-market trade on Wednesday.

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