10:25 AM EDT, 03/19/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
GIS reported disappointing Q3 FY 25 results, with revenue of $4.84B falling 5% Y/Y and missing consensus by $111M, while adj-EPS of $1.00 (-15% Y/Y) beat consensus by $0.04. Organic sales declined 5% on lower volumes (-4%) and negative price/mix (-1%), but excluding retail inventory headwinds, organic sales would have declined only 1%. The company faced challenges across snacking categories, away-from-home channels, and international markets (particularly China), while operating margins contracted 140 bps Y/Y to 16.5%. Given weak Q3 performance and lower expectations for Q4, GIS lowered its FY 25 outlook, now projecting organic sales to decline 1.5%-2.0% and adj-operating profit/EPS to fall 7%-8%. Overall, FY 25 has proven to be a challenging year, as prolonged value-seeking consumer behavior and macro volatility has created significant headwinds. Looking at FY 26, we expect increased investments in marketing, trade promotions, and innovation, funded by $700M+ in cost savings and proceeds from a 53rd week.