10:46 AM EDT, 03/17/2025 (MT Newswires) -- General Mills' ( GIS ) fiscal Q3 results on Wednesday will likely see the company reiterate a "tough operating environment in the packaged food space," RBC Capital Markets said in a note to clients Monday.

The results will likely be impacted by "retailer inventory dynamics" and "negative read throughs" from peers, RBC said, adding that macro and political volatility are leading to "consumer unease."

RBC cut its estimate for General Mills' ( GIS ) Q3 organic growth to minus 3.1%, compared with consensus estimates of minus 2.7%, and its Q3 EPS estimate to $0.96, versus consensus estimates of $0.96.

"Given that we expect a soft Q3, we believe that organic growth guidance for the [fiscal year] should be lowered and we are more comfortable at the low end of the current EPS guide," RBC said.

RBC maintained a sector perform rating and a $70 price target on General Mills ( GIS ).

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