02:33 PM EDT, 03/17/2025 (MT Newswires) -- General Mills' ( GIS ) latest quarterly results are likely to point to a continued "tough" operating environment for packaged food companies, RBC Capital Markets said Monday.

The maker of Cheerios and Dunkaroos is scheduled to report its fiscal third-quarter results Wednesday.

RBC lowered its per-share earnings estimate to $0.96 -- which it said was also the Wall Street's view -- from $0.99, while organic sales are seen falling 3.1% versus the Street's expectations for a 2.7% decline. RBC said its sales outlook factors in lower estimates mainly for the North America retail and pet segments.

"We remain conservative on (the quarterly) results due to retailer inventory dynamics and negative read throughs from competitors, coupled with macroeconomic and political volatility that is causing further consumer unease," RBC said in a note to clients.

In December, General Mills ( GIS ) said it expected adjusted earnings to be down 1% to 3% in constant currency terms for fiscal 2025. It projected organic sales to be in a range of flat to up 1%, but near the lower end. The company was facing a "dynamic external" business backdrop, Chief Executive Jeff Harmening said in a statement at the time.

"Given that we expect a soft (third quarter), we believe that organic growth guidance for the (full year) should be lowered, and we are more comfortable at the low end of the current EPS guide," RBC wrote. "Overall, we expect (General Mills ( GIS )) to reiterate a tough operating environment in the packaged food space."

Broadly speaking, the sentiment for the packaged food and snacking space continues to be "overwhelmingly pessimistic," the brokerage wrote.

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

The company's shares were up 2.7% in Monday late-afternoon trade. The stock is down 4.1% so far in 2025.

Price: 61.05, Change: +1.49, Percent Change: +2.50