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Investing.com – General Mills (NYSE:GIS) shares fell 4% Wednesday after reporting third quarter earnings that missed analysts’ forecasts even as revenues topped expectations.
The maker of Pillsbury dough and Cheerios and Cinnamon Toast Crunch cereals announced earnings per share of 82 cents on revenue of $4.52 billion. Analysts polled by Investing.com anticipated EPS of 83 cents on revenue of $4.45 billion.
The company’s forecast for 2021 supported the negative sentiment for the stock.
General Mills expects 2021 adjusted operating profit margin to be approximately in line with fiscal 2020 levels, and in line with the guidance the company outlined at the beginning of the year. It sees full-year organic net sales increasing approximately 3.5%, reflecting strong year-to-date growth.
The over-150-year-old company expects higher raw material and logistics costs in the second half to eat into its margins.
