Yoplait yogurt and cereal maker General Mills (GIS) is up $1.72, or 3%, today at $57.74, after the company this morning reported profit that beat estimates by a country mile for its fiscal fourth quarter ended in May, despite sales that were merely in line. This was not unexpected, as the company had pre-announced on June 7 it would beat prior forecasts.
What was surprising was the $4.20 to $4.25 per share the company forecast for the May 2010 year; General Mills said earlier this month it was “comfortable” with analysts’ $4.10 estimate.
Revenue rose 5%, year over year, to $3.6 billion, compared to $3.69 billion expected, while profit of $1.07 was well ahead of the consensus 81-cent estimate.
The strong profit results and better-than-expected outlook confirm the positive view I penned in a “Barron’s Take” article back on June 8, and Barron’s magazine writer Neil Martin’s bullish piece on April 27, “Coming: A Cereal Thriller.” The stock could well be on its way to $62 given the positive outlook.
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