Yahoo Finance Why investors are watching the makers of Cheerios and Corona
A number of consumer staple stocks report their quarterly results this week. On Wednesday, both General Mills (GIS) and Constellation Brands (STZ) will release their results before the opening bell. The Estimize community is predicting an EPS figure of $0.72 and a revenue target of $4.530B for General Mills. This is compared to Wall Street which predicts an EPS number of $0.71 and a revenue figure of $4.513B. For Constellation Brands, both Estimize and Wall Street are forecasting a solid lift in EPS quarter-over-quarter. Estimize predicts Constellation Brands will deliver EPS of $1.24 and revenues of $1.619B. Wall Street anticipates EPS of $1.22 and revenues of $1.615B.
The upcoming result for General Mills will be closely watched as investors look for further guidance on how the announced restructuring is progressing and confirmation on the upfront costs and expected benefits likely to be derived moving forward. Attention will also be paid to the companies diminishing sales growth figures. General Mills’ product mix has lead to negative revenue growth year-over-year as the American consumer becomes increasingly more health conscious, with demand for some of General Mills key brands such as Lucky Charms and Betty Crocker waning.
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Constellation Brands on the other hand has continued to post double-digit revenue growth rates for the last 7 consecutive quarters. The beverage company has been a benefactor of surging demand for premium imported beer products throughout the United States. It’s Corona and Modelo brands have helped support the company’s Mexican beer portfolio which remains strong. Sales within Constellation Brand’s wine and liquor segments also continue to do well.
Both General Mills and Constellation Brands have outperformed the market year-to-date. However, the continuation in their share price strength may well depend on the details of their reports on Wednesday.
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