General Mills: Q4 Profit Tops Forecasts, 2013 Outlook Misses

Analysts say projected revenue growth for 2013 is rather low

   

General Mills (NYSE:GIS) said its fiscal fourth-quarter net income increased 1.6% to $325.4 million, compared to $320.2 million during the same time last year.

Adjusted EPS came in at 60 cents, narrowly topping the 59 cents Wall Street expected, Reuters noted.

 General Mills: Q4 Profit Tops Forecasts, 2013 Outlook Misses
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Sales during the fourth quarter jumped 12% to $4.07 billion, but that missed analysts’ forecast of $4.11 billion.

The food products maker lowered its EPS outlook for 2013 to $2.65. Analysts had been expecting $2.75.

Investors were not happy with the 2013 guidance. Shares of General Mills slid about 2% in Wednesday mid-day trading.

Analysts cited by Reuters said the 2013 outlook estimated earnings growth at just 3.7%. That was considered paltry even in the current economic environment.

Other analysts pointed out that the company was spending money to develop new products, which suggested longer term benefits.


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