General Mills Earnings Highlights: GIS CFO Says Do Not Expect The Operating Profit Margins To Improve This Year

last year

General Mills Earnings Highlights.

#1 Morning Stock Show To Get You Ready For The Stock Market Open, PreMarket Gainers, Earnings This Week, Economic Data & More!

Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.

Transcript

00:00 General Mills, Q1 adjusted EPS here at $1.09,

00:04 beat the $1.08 estimate,

00:06 sales of 4.9 billion,

00:07 beat the 4.88 billion estimate.

00:10 General Mills reaffirmed full year sales growth

00:13 of three to 4% and adjusted EPS growth of four to 6%.

00:18 Is defensives the area that we should be looking at?

00:23 - Why, why, why be in a stock like General Mills

00:28 when you can be in cash?

00:30 And you know what, if you took that advice three months ago,

00:33 you're selling General Mills up at 80 and not at 66 today.

00:37 So it's biggest problem is high interest rates.

00:41 It's biggest problem isn't gonna be demand

00:43 falling off a cliff.

00:44 It's that there's no growth.

00:46 These are serial company staples

00:47 that were alternatives to 1% cash.

00:50 They were great when you had the Tina trade on

00:53 because, well, I can sit here, get 3.5%,

00:55 maybe a little bit of growth of it.

00:57 This is good.

00:57 Now you're losing 2% cash

00:59 'cause dividend yield is only 3.5%.

01:00 You get no growth for it.

01:02 And you're probably paying, you know,

01:03 what are you paying?

01:04 Let's look at the P on this puppy.

01:06 They're 14, 15 times.

01:08 So it's under a market multiple.

01:09 It's come down.

01:09 It used to be like 18, 19 when we were complaining about it.

01:12 So it is coming down.

01:13 At 11 or 12 times earnings, give me a call.

01:15 I'll be interested.

01:16 But 15, could it pop?

01:18 Does it get, you know, if we go into, you know,

01:20 like a market, like downturn cycle,

01:22 General Mills can actually lift on that.

01:24 But I think why GIS and why not cash?

01:27 - Yeah.

01:28 Give me a green monthly candle.

01:30 Man, those are pretty thick red monthly candles there.

01:34 But let me just give a little bit of positive here

01:37 'cause there's a setup that I can identify for you.

01:41 There's all these highs at the 65, 60, 65, 70 level.

01:45 That's like three out of your last four highs.

01:48 You popped above it.

01:50 Almost 50,000 shares have traded.

01:52 So I would not be surprised if it could catch a bid here

01:55 at 66, 50 and move, you know,

01:58 maybe move its way up closer to 68.

02:01 That's the technical setup.

02:03 If you don't hold this, if it opens up here at 66, 50,

02:07 take 60 and then turns off,

02:09 you're looking at like 66,05, 66,10,

02:13 I think they're gonna sell it.

02:14 But it has the potential.

General Mills Earnings Highlights: GIS CFO Says Do Not Expect The Operating Profit Margins To Improve This Year

Category

Transcript

Recommended