02:54 PM EST, 12/13/2024 (MT Newswires) -- General Mills ( GIS ) is unlikely to announce any major deviations to its 2025 guidance once it reports its fiscal Q2 earnings, RBC Capital Markets said in an earnings preview Friday.

The firm said it expected "another neutral quarter" from the company with negative low single digit growth in North America Retail and no significant turn around in China. Growth during the quarter will primarily come from Brazil, where the company fixed some of its pricing "mishaps."

RBC Capital said its fiscal Q2 earnings per share estimate of $1.22 was in line with forecasts, with the rest of the year remaining a 'wait and see' on whether the company's focus on the core of the business will pay off.

"Fiscal 2025 remains a show me story where [General Mills ( GIS )] will have to prove that it can return to executing at a high level and return to growth across its categories," RBC wrote.

The firm noted that there was also the risk of the incoming Trump administration placing bans on food ingredients, many of which are found in cereals, making the operating environment unclear.

RBC has a sector perform rating on the stock with a $70 price target.

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