General Mills Adjusted Q4 Net Beats View; Forecast Misses; Dividend Raised 8% (GIS)
Packaged foods maker General Mills, Inc. (GIS) on Wednesday posted fiscal fourth quarter earnings that beat Wall Street’s expectations, although its 2013 forecast was below analysts’ view.
The Minneapolis-based company reported fiscal fourth quarter net income of $325.4 million, or 49 cents per share, compared with $320.2 million, or 48 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 60 cents per share.
Revenue rose 12% from last year to $4.07 billion.
On average, Wall Street analysts expected a slightly smaller profit of 59 cents per share, albeit on higher revenue of $4.11 billion.
Looking ahead, GIS forecast full-year fiscal 2013 earnings of $2.65 per share, which would miss analysts’ outlook of $2.75.
In a separate announcement, the company raised its quarterly dividend payout by over 8%. The new dividend of 33 cents per share (up from 30.5 cents) will be paid on Aug. 1 with an ex-dividend date of July 6.
General Mills shares posted modest gains in premarket trading Wednesday.
The Bottom Line
Shares of General Mills (GIS) will now have a 3.46% dividend yield, based on the higher dividend payout and last night’s closing stock price of $38.15. The stock has technical support in the $35-$36 price area. The stock is trading near the all-time high range of $40-$41 a share.
General Mills, Inc. (GIS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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