General Mills, Inc. (GIS) is bracing for a tough quarterly report, and Wall Street's most accurate forecasters have been busy lowering their expectations ahead of Wednesday's earnings release.
The Saint Petersburg, Florida-based food giant is scheduled to report its second-quarter results before markets open on December 17. Analysts are projecting earnings of $1.02 per share, which would represent a significant decline from the $1.40 per share General Mills posted in the same period last year. Revenue expectations also tell a sobering story, with consensus estimates calling for $4.78 billion compared to $5.24 billion a year ago.
The recent wave of price target cuts shows analysts tempering their enthusiasm, even as they largely maintain neutral-to-positive stances on the stock. Here's how some of the most accurate analysts on the Street have adjusted their views:
Wells Fargo analyst Chris Carey, who carries a 59% accuracy rate, maintained an Equal-Weight rating but trimmed his price target from $53 to $50 on December 12. The next day, Jefferies analyst Rob Dickerson—boasting the highest accuracy rate in this group at 65%—kept his Hold rating while cutting his target from $50 to $47.
Stifel analyst Matthew Smith remained the most optimistic, maintaining a Buy rating despite slashing his price target from $56 to $52 on December 11. His accuracy rate stands at 52%. Earlier in the fall, Mizuho's John Baumgartner (55% accuracy) and UBS analyst Peter Grom (also 55% accuracy) made similar moves, reducing their targets to $52 and $47, respectively, while maintaining Neutral and Sell ratings.
It's worth noting that General Mills tried to reassure investors back in October, reaffirming its long-term growth targets and fiscal 2026 financial outlook during Investor Day. Still, the consistent drumbeat of price target reductions suggests analysts remain cautious about near-term performance.
Shares of General Mills closed up 1% at $46.69 on Friday, trading below even the most pessimistic of these newly reduced price targets. Investors will get their answers Wednesday morning when the company reveals whether it can meet, beat, or disappoint these already-lowered expectations.
