General Mills Q4 Earnings Coming Up: What Investors Need to Understand

General Mills, Inc. GIS is likely to register a decline in its top and bottom lines when it reports fourth-quarter fiscal 2025 earnings on June 25. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 71 cents per share, indicating a decrease of 29.7% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2025 earnings is pegged at $4.19 per share, reflecting a decline of 7.3% from the prior year’s reported figure. GIS has a trailing four-quarter negative earnings surprise of almost 6%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $4.6 billion, which indicates a 2.4% decrease from the year-ago quarter. The consensus mark for fiscal 2025’s top line is pegged at $19.5 billion, which indicates a decline of 1.6% from the year-ago level.

General Mills, Inc. Price and EPS Surprise

General Mills, Inc. price-eps-surprise | General Mills, Inc. Quote

Things to Know About GIS’ Q4 Earnings

General Mills continues to navigate a highly competitive and price-sensitive food industry environment. Elevated grocery inflation is weighing heavily on consumer spending, leading to increased trade-down behavior, particularly toward lower-cost private label brands in key categories such as cereal and pet food. This shift, along with reduced discretionary food spending by budget-conscious consumers, remains a major obstacle to volume recovery.

The company is also grappling with macroeconomic and operational headwinds across international markets, especially in China, where consumer demand remains subdued. Additionally, General Mills is experiencing retailer inventory-related pressures in its North America Retail and North America Pet segments. Sluggish trends in U.S. snacking categories and softer demand in the away-from-home foodservice channel have further compounded the company’s challenges. The continuation of these trends remains a concern for the fourth quarter of fiscal 2025.

Looking ahead, General Mills has provided a cautious outlook for fiscal 2025, forecasting a decline in organic net sales of between 2% and 1.5%. The company also expects full-year adjusted operating profit and earnings per share (EPS) to decline between 8% and 7% in constant currency, reflecting lower revenue expectations.

While General Mills has implemented cost-saving initiatives under its Holistic Margin Management strategy, persistent inflationary pressures continue to impact its performance. These broad-based cost challenges, combined with weakening consumer demand, underscore the tough landscape facing General Mills in the near term.

Earnings Whispers for GIS Stock

Our proven model does not predict an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

General Mills carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +0.80%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The Hershey Company HSY currently has an Earnings ESP of +0.83% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The consensus mark for Hershey’s quarterly revenues is pegged at $2.5 billion, which indicates an increase of 20% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Hershey’s quarterly earnings per share (EPS) is pegged at 99 cents, indicating a 22.1% decline from the year-ago period. HSY delivered a trailing four-quarter earnings surprise of 0.6%, on average.

Mondelez International, Inc. MDLZ currently has an Earnings ESP of +0.62% and a Zacks Rank #3. The company is likely to register top-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.9 billion, which indicates an increase of 6.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Mondelez’s quarterly EPS is pegged at 68 cents, indicating a 20.9% decline from the year-ago period. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average.

The Estee Lauder Companies Inc. EL currently has an Earnings ESP of +48.74% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 EPS is pegged at 5 cents, which implies a 92.2% decrease year over year.

The consensus estimate for Estee Lauder Companies’ quarterly revenues is pegged at $3.38 billion, which indicates a 12.7% decrease from the figure reported in the prior-year quarter. EL delivered a trailing four-quarter earnings surprise of 107.4%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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