General Mills: Q4 Profit Tops Forecasts, 2013 Outlook Misses

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.

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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