General Mills (GIS) reported earnings on Thur 17 Dec 2015 (b/o)

** charts before earnings **

 

** charts after earnings **

 

General Mills misses by $0.01, misses on revs; adjusts FY16 outlook as result of Green Giant divestiture:

Reports Q2 (Nov) earnings of $0.82 per share, $0.01 worse than the Capital IQ Consensus of $0.83; revenues fell 6.1% year/year to $4.42 bln vs the $4.63 bln Capital IQ Consensus. General Mills revised its 2016 full-year growth targets to reflect the impact of the Green Giant divestiture. General Mills expects the transaction will reduce fiscal 2016 net sales growth and total segment operating profit growth by approximately 2 percentage points each, and will be dilutive to fiscal 2016 earnings per share by approximately 7 cents, excluding the gain on sale.

• Net sales in constant currency are now expected to decline at a low single-digit rate from the 2015 levels that included a 53rd week. (Prior: Net sales in constant currency are expected to essentially match the 2015 levels that included a 53rd week.)
• Total segment operating profit is expected to essentially match last year's levels in constant currency. (Prior: Total segment operating profit is expected to grow at a low single-digit rate in constant currency.)
• Constant-currency adjusted diluted EPS is expected to grow at a low single-digit rate from the base of $2.86 earned in fiscal 2015. At current exchange rates, the company estimates a 9-cent headwind from currency translation in 2016. (Prior: Constant-currency adjusted diluted EPS is expected to grow at a mid single-digit rate from the base of $2.86 earned in fiscal 2015. At current exchange rates, the company estimates a 9-cent headwind from currency translation in 2016.)
• In the first half of fiscal 2016, General Mills announced incremental actions related to Project Century in North America and in our Europe region. The company now is targeting $450 million in cumulative cost savings by fiscal 2017 and $500 million by fiscal 2018 from the combination of Project Century, Project Catalyst, Project Compass, and our policies and practices update, including zero-based budgeting.