Shares of branded consumer foods maker General Mills, Inc. (GIS) are up more than 5% Wednesday morning after reporting better-than-expected quarterly earnings. The company also raised its full-year outlook.
“Given the strength of our first-quarter results and confidence in our ability to adapt to continued volatility ahead, we are increasing our full-year outlook for net sales, operating profit, and EPS growth,” said General Mills Chairman and Chief Executive Officer Jeff Harmening.
Net earnings in the first quarter increased to $820 million or $1.35 per share from $627 million or $1.02 per share in the same quarter a year ago.
Excluding one-time items earnings were $1.11 per share, that beat the average estimate of analysts polled by Thomson-Reuters of $1 per share.
Net sales increased 4 percent year-on-year to $4.718 billion. The consensus estimate was for $4.72 billion.
Looking forward, the company expects full-year Organic net sales to increase 6%-7%, compared to the previous expectation of 4%-5% growth.
Adjusted EPS is now expected to increase 2%-5%, in constant currency, including a 3-point net headwind from divestitures and acquisitions and an estimated 1-point headwind from the ice cream recall. Adjusted EPS was previously expected to range between flat and up 3% in constant currency, including the 3-point net headwind from divestitures and acquisitions.
GIS touched a new high of $79.70 this morning.
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