General Mills, Inc. (NYSE:GIS) is a leading global food company known for its wide range of products, including cereals, snacks, and pet foods. As it prepares to release its third-quarter fiscal 2025 earnings, analysts have set expectations for an earnings per share (EPS) of $0.95. This represents an 18.8% decline from the previous year, reflecting the challenges the company faces.
The company's revenue is projected to be approximately $4.95 billion, a 2.8% decrease compared to the same quarter last year. This decline is attributed to rising selling, general, and administrative costs, which have impacted the company's financial performance. Despite these challenges, General Mills has a history of outperforming earnings expectations, with an average earnings surprise of 7.8% over the past four quarters.
General Mills plans to increase its media spending by over 40% for the fiscal third quarter, as highlighted in its latest earnings call. This strategic move aims to boost brand visibility and drive sales, even as the company navigates cost pressures. The Zacks Consensus Estimate suggests that revenues will be around $5 billion, slightly higher than Wall Street's projection.
The company's financial metrics provide further insight into its market valuation. General Mills has a price-to-earnings (P/E) ratio of approximately 13.04, indicating how the market values its earnings. The price-to-sales ratio stands at about 1.69, reflecting investor sentiment towards its revenue. Additionally, the enterprise value to sales ratio is around 2.30, suggesting the market's valuation of the company's total worth relative to its sales.
General Mills' debt-to-equity ratio is approximately 1.58, highlighting its reliance on debt financing. The current ratio of around 0.92 suggests the company's ability to cover short-term liabilities with its short-term assets. These financial metrics, combined with the company's strategic initiatives, will be closely watched by investors as the earnings announcement approaches.
