10:25 AM EST, 12/15/2025 (MT Newswires) -- General Mills ( GIS ) is expected to report fiscal second-quarter results largely in line with Wall Street's estimates and affirm its full-year outlook, RBC Capital Markets said in a Monday client note.

The brokerage is projecting per-share earnings of $1.03 and sales of $4.73 billion for the Cheerios maker, which is scheduled to release its results on Wednesday. The Street is expecting EPS of $1.03 on revenue of $4.77 billion, according to RBC.

It forecasts organic sales to be down 2.7%, while the Street sees a 2.8% drop.

RBC said General Mills' ( GIS ) annual dollar sales are expected to improve sequentially in the November quarter, but still be down 2%.

"We see consumption sequentially improving in both North America retail and North America pet," RBC's co-head of global consumer and retail research, Nik Modi, wrote in the note. "Importantly, volume in North America retail has inflected positive this quarter, while dollars are improving despite still being negative (in line with [management's] expectations)."

RBC does not expect General Mills ( GIS ) to adjust its fiscal 2026 guidance, which it affirmed at its investor day in October. The company projects adjusted EPS to decrease by 10% to 15% at constant currencies, and organic net sales to be up or down 1%.

"The operating environment has largely remained intact since then and consumption trends seem to be trending in-line with (management's) expectations," Modi said.

An in-line second quarter, along with the affirmation of the full-year guidance, should be positive for General Mills' ( GIS ) shares, RBC said. The stock has fallen 26% so far this year.

"Valuation remains depressed, which is in part due to poor fundamentals in the packaged food space, but (General Mills ( GIS )) is one of few companies that have been actively cutting price to restore volumes," Modi said.

RBC has an outperform rating on the stock and a price target of $63.

Price: 46.99, Change: +0.30, Percent Change: +0.64