Shares of General Mills (GIS) are down 5% after the company behind Wheaties and Cheerios reported mixed financial results and offered tepid forward guidance.
For its fiscal fourth quarter, General Mills announced earnings per share (EPS) of $1.01 U.S., which beat Wall Street forecasts of 99 cents U.S.
However, revenue of $4.71 billion U.S. missed consensus targets that called for $4.85 billion U.S.
Management blamed the sales miss on financially stressed consumers who are contending with high inflation and interest rates.
Looking ahead, General Mills said it expects organic net sales to be flat to up 1%. It also forecast full-year earnings per share of $4.52 U.S., which is below the $4.66 U.S. that Wall Street had anticipated.
The company also announced that it is raising its quarterly dividend by 2% to $0.60 U.S. per share from $0.59 U.S. previously.
Prior to today (June 26), the stock of General Mills had declined 18% over the past 12 months to trade at $67.26 U.S. per share.