General Mills is missing its earnings expectations. The stock is down.

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General Mills

shares fell on Tuesday after the food company reported second-quarter tax profit that beat expectations.

Net income for the quarter was $ 597.2 million, lower than Wall Street estimates of $ 624.1 million. Adjusted earnings of 99 cents per share missed the FactSet consensus by $ 1.05. Sales of $ 5.02 billion in the quarter topped estimates by $ 4.8 billion.

General Mills shares (ticker: GIS) fell 4% at $ 65.08 on Tuesday.

The branded food seller also said it experienced inflation and headwinds in the supply chain during the quarter, with operating profit down 13% to $ 800 million.

General Mills, however, said the potential changes in consumer behavior and the increase in the pet population driven by the pandemic will create continued demand for food in the home and favorable winds for feed. of company.

The company raised its sales outlook for fiscal 2022 to reflect “stronger net sales growth, higher costs and the impact of the European divestiture of Yoplait.”

He now expects organic growth in net sales of 4% to 5% against previous expectations down 1% to 3%. Analysts tracked by FactSet are forecasting sales of $ 18.29 billion for the fiscal year ending May.

Write to Karishma Vanjani at [email protected]

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