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Shares of General Mills (NYSE:GIS) are up over 2% in pre-market Wednesday after the company reported solid FQ1 results and raised guidance.
General Mills reported a Q1 EPS of $1.11 to top the analyst estimate of $0.99. Revenue for the quarter came in at $4.7 billion versus the consensus estimate of $4.72 billion.
GIS also raised its full-year forecast so that now expects organic net sales between +6% and +7%, up from the prior range of +4% to +5% and consensus of +5.68%. The adjusted EPS is seen between +2% to +5%, again above the prior range of 0% to +3%.
“Given the strength of our first-quarter results and confidence in our ability to adapt to continued volatility ahead, we are increasing our full-year outlook for net sales, operating profit, and EPS growth,” the company said in a statement.
A Goldman Sachs analyst said that the beat was driven by better margin delivery.
“While the beat was largely anticipated by investors we speak with, few expected the company to raise guidance this early in the year. As such, we expect the stock to trade higher and we would be surprised if CAG (next Food company to report and one that we expect to post a similar beat) did not trade higher in sympathy,” the analyst said in a client note.
