General Mills Gears Up for Q3 Earnings: Here's What You Should Know

General Mills, Inc. GIS is likely to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 earnings on March 19. The Zacks Consensus Estimate for revenues is pegged at almost $5 billion, implying a 2.8% decrease from the prior-year quarter’s reported figure. The consensus mark for earnings has moved down by a penny in the last seven days to 95 cents per share, indicating a decline of 18.8% from the year-ago quarter’s reported figure. GIS has a trailing four-quarter earnings surprise of 7.8%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Things to Know About GIS’ Q3 EarningsGeneral Mills is facing rising selling, general and administrative (SG&A) expenses, primarily due to increased media investments. In its latest earnings call, management revealed plans to boost media spending by over 40% for the fiscal third quarter, further intensifying cost pressures. In addition, the company is not immune to broader industry-wide inflationary pressures. The company anticipates input cost inflation to account for 4% of the cost of goods sold in fiscal 2025, which is likely to have affected its fiscal third quarter.General Mills, Inc. Price and EPS Surprise General Mills, Inc. price-eps-surprise | General Mills, Inc. QuoteDespite implementing cost-control measures through its Holistic Margin Management strategy, escalating costs remain a key concern. Our projections indicate an 80-basis-point decline in adjusted gross margin to 33.2% for the to-be-reported quarter. Continued cutting on discretionary food spending by price-conscious customers also remains a hindrance to volume recovery.Earnings Whispers for GIS StockOur proven model does not predict an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.General Mills currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.47%.Some Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.BJ’s Wholesale Club BJ has an Earnings ESP of +1.13% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fiscal first-quarter earnings per share is pegged at 90 cents, which implies a 5.9% year-over-year increase. You can see the complete list of today’s Zacks #1 Rank stocks here.BJ’s Wholesale Club’s top line is expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $5.19 billion, which indicates a rise of 5.3% from the prior-year quarter’s actual. BJ delivered a trailing four-quarter earnings surprise of 12%, on average.RH RH currently has an Earnings ESP of +2.15% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for RH’s quarterly earnings per share is pegged at $1.90, up 163.9% from the year-ago period. RH has a trailing four-quarter negative earnings surprise of 113.6%, on average.The consensus estimate for RH’s quarterly revenues is pegged at $826.6 million, which implies an increase of almost 12% from the prior-year quarter.WK Kellogg KLG currently has an Earnings ESP of +2.44% and a Zacks Rank of 3. The company is likely to register a decline in its top line when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for WK Kellogg’s quarterly revenues is pegged at $678.6 million, which implies a dip of 4% from the prior-year quarter.The Zacks Consensus Estimate for WK Kellogg’s quarterly earnings per share is pegged at 41 cents, indicating a 10.8% increase from the year-ago period. The consensus mark for earnings has remained unchanged in the last 30 days. KLG delivered an earnings surprise of 18.2% in the last reported quarter.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Mills, Inc. (GIS): Free Stock Analysis Report BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report RH (RH): Free Stock Analysis Report WK Kellogg Co. (KLG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks