BUZZ-Preview: General Mills revenue and profit expected to decline, impacted by consumer demand

September 22 - ** General Mills (GIS.N) shares rose 0.5% to $35.60 in early afternoon trading on Tuesday. The company will release its quarterly earnings before the market opens on Wednesday, with investors closely monitoring trends in consumer demand and price increases.

** According to data from London Stock Exchange Group (LSEG), the maker of Cheerios cereal and other packaged foods is expected to report a nearly 4% year-over-year decline in fiscal first-quarter revenue to $4.3 billion. Adjusted earnings per share are estimated at $0.72, compared with $0.86 a year earlier.

** Earlier this month, GIS sued major U.S. sugar producers (link), accusing them of price-fixing, which drove up the company’s raw material costs.

** In its latest report, the company noted (link) that demand for everyday food products remained resilient, but its key North American retail segment declined by 4%.

** As a result, the stock is down about 23% year-to-date, significantly underperforming the S&P 500 Consumer Staples Index, which is up about 7% .SPLRCS and the S&P 500 Index, which is up around 13% .SPX.

** The stock recently traded at a forward price-to-earnings ratio of 11, compared to its five-year average of 15 — LSEG.

** Of the 21 analysts covering GIS, 3 rated it “strong buy” or “buy,” 14 rated it “hold,” and 4 rated it “sell” or “strong sell.” The median target price is $38 per share.

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