This year a focus on international expansion has enabled General Mills (GIS) to increase its year over revenue in each of the past four quarters The American food product company has seen its stock rise 18.5% since the start of the year. When GIS last reported earnings in September they were in line with Wall Street expectations on profit but surprised analysts with $59M more revenue than expected.
General Mills is expected to give its next earnings report for FQ2 2014 on Wednesday, December 18th. The information below is derived from data submitted to the Estimize platform by a set of Buy Side and Independent analyst contributors.
The current Wall Street consensus expectation is for GIS to report 88-cent EPS and $4.931B revenue while the current Estimize consensus from Buy Side and Independent contributing analysts is also 88-cent EPS but $4.948B revenue. The magnitude of the difference between the Wall Street and Estimize consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market. In this case, we're seeing a smaller differential between the Estimize and Wall Street numbers.
Over the past four months the Wall Street consensus trend for EPS has dropped 1 cent from 89 cents to 88 cents while over the same period the revenue expectation has declined from $4.963B to $4.931B. The Estimize EPS consensus is where it began at 48 cents and the revenue consensus has also remained unchanged at $4.948B.
Over the previous eight quarters, GIS has beaten the Wall Street consensus for EPS and revenue four times each. Over the five quarters for which there is sufficient data GIS beat the Estimize EPS consensus four times. General Mills' revenue beat the Estimize consensus 1 time and was accurately forecasted once.
The distribution of estimates published by analysts on Estimize range from 87 cent to 90 cent EPS and $4.940BB to $4.955B in revenues. This quarter our contributing analysts are expecting General Mills to beat Wall Street on both EPS and revenue. While the Wall Street consensus for EPS falls within our analysts' range, each contributing analyst within the Estimize community is expecting more revenue from General Mills compared to the Street.
The analyst with the highest estimate confidence rating this quarter is BR2139 who projects an 87 cent EPS and $4.950B in revenue. Estimate confidence ratings are calculated through algorithms developed by our deep quantitative research which looks at correlations between analyst track records and tendencies as they relate to future accuracy. In this case the analyst with the top confidence rating is expecting more revenue and less profit than both the Wall Street Consensus and the Estimize community.
This quarter there is only a small discrepancy between the expectations of buy side and independent analysts and Wall Street. Both groups are projecting 88 cent EPS but the consensus from Estimize is expecting slightly more year over year revenue growth.