MINNEAPOLIS (AP) — General Mills' fiscal second-quarter net income rose 2 percent, helped by lower expenses.
But the Minneapolis company's performance fell short of Wall Street's expectations. Its stock declined more than 2 percent in Wednesday premarket trading.
For the period ended Nov. 24, General Mills — whose brands include Cheerios, Yoplait and Betty Crocker — earned $549.9 million, or 84 cents per share. That compares with $541.6 million, or 82 cents per share, a year ago.
The latest quarter did not include Thanksgiving, while the prior-year period did.
Stripping out certain items, earnings were 83 cents per share. Analysts surveyed by FactSet expected higher earnings of 87 cents per share.
Selling, general and administrative expenses declined from a year earlier, as did restructuring, impairment and other exit costs.
Revenue was basically flat at $4.88 billion as pricing realization was offset by foreign exchange translation. Wall Street forecast revenue of $4.95 billion.
Sales for the U.S. retail segment dipped 1 percent. Sales for the snacks, Small Planet Foods and Big G divisions increased, but sales for the segment's remaining divisions dropped.
Sale for the international businesses rose 2 percent to $1.4 billion on increased sales in Canada, China and Latin America.
Shares of General Mills dropped $1.08, or 2.2 percent, to $48.50 in premarket trading about 75 minutes before the market opening.
General Mills Inc. maintained its outlook for 2014 adjusted earnings of $2.87 to $2.90 per share. The company said that foreign currency fluctuations are now expected to have a bigger impact than initially anticipated and that the potential devaluation of Venezuela's currency would likely reduce its earnings per share to the low end of its guidance range.
Analysts predict 2014 earnings of $2.90 per share.