General Mills (NYSE:GIS) shares are down more than 6% premarket after the company missed fourth-quarter consensus revenue estimates.
The food company did, however, top profit estimates, posting Q4 EPS of $1.12, $0.05 better than the analyst estimate of $1.07. Revenue for the quarter rose 3% YoY, coming in at $5 billion versus the consensus estimate of $5.17B.
The company said its sales were impacted by a 1-point headwind from net divestiture and acquisition activity as well as 1-point of unfavorable foreign currency exchange.
"Led by our Accelerate strategy, our team successfully navigated a highly dynamic operating environment with agility, focus, and resilience," commented General Mills' chairman and chief executive officer Jeff Harmening.
General Mills declared a quarterly dividend of $0.59 per share, or $2.36 annualized, representing a 9.3% increase from the prior dividend of $0.54. The company's annual yield on the dividend is 2.9%.
Looking ahead, the company said it expects the largest factors impacting its performance in fiscal 2024 to be the economic health of consumers, the moderating rate of input cost inflation, and the increasing stability of the supply chain environment.
GIS sees its fiscal 2024 organic net sales increasing between 3% and 4%, with adjusted earnings per share increasing 4% to 6% in constant currency from the base of $4.30 earned in fiscal 2023.