- General Mills (NYSE:GIS) -6.3% premarket despite narrowly beatings expectations for FQ3 earnings and revenues after cutting its full year earnings forecast, citing a sharp increase in freight and commodity costs.
- GIS forecasts FY 2018 EPS of $3.08, below the $3.17 analyst consensus estimate, coming in flat to 1% growth compared to its previous guidance of a 3%-4% increase.
- For FQ3, GIS says adjusted operating profit margin decreased 120 bps to 15.7%, primarily reflecting lower adjusted gross margin.
- Net income more than doubled to $941.4M in the quarter, helped by a one-time $504M tax benefit from the recent changes in the U.S. tax code.
- “Like the broader industry, we’re seeing sharp increases in input costs, including inflation in freight and commodities,” the company says. "We are moving urgently to address this increasingly dynamic cost inflation environment."
- Now read: General Mills: An Expensive But Much-Needed Acquisition
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