General Mills profit beats estimate, raises outlook

General Mills Inc.
GIS,
+0.22%
said Tuesday its second-quarter profit rose to $605.9 million, or $1.01 a share, from $597.2 million, or 97 cents a share in the year-ago quarter. The food giant’s adjusted earnings rose to $1.10 a share from 99 cents a share and beat the Wall Street target of $1.07 a share, according to estimates compiled by FactSet. Second-quarter revenue increased to $5.22 billion from $5.02 billion, and came in ahead of the analyst forecast of $5.19 billion. Looking ahead, General Mills said it’s lifting its 2023 adjusted earnings outlook to growth of 3% to 5%, from its earlier view of 0% to 3%. It’s also hiking its 2023 estimate for adjusted earnings per share to 4% to 6% from its earlier view of 2% to 5%, due to better performance and price mix. “General Mills continues to expect the largest factors impacting its performance in fiscal 2023 will be the economic health of consumers, the inflationary cost environment, and the frequency and severity of disruptions in the supply chain,” the company said. Shares of General Mills rose 0.7% in premarket trades.