General Mills' share price currently sits around $86.91 a share. The company is set to report an EPS of $1.06 on revenue of $5.2bn tomorrow.
Overview
General Mills, Inc. is an American multinational company that produces and markets branded processed goods for consumers that are sold in grocery stores. The company was first well-known for being a significant flour miller. It was established in Minneapolis near Saint Anthony Falls on the banks of the Mississippi River.
Financials
Looking at the company’s financial year of 2022, revenue grew by $800m but gross profit fell slightly by $46m year-on-year. However, EBITDA went up by $300m and profit after tax and expenses still came in at $400m higher than in 2021. Therefore, this led to an increase in earnings per share, the EPS in 2022 came in at $4.46 compared to $3.81 in the previous year. Taking a look at the balance sheet, total assets saw a decline of $751m but total liabilities also declined and by $1.75bn. Even though the value of assets fell, the business managed to reduce its liabilities to keep the financial balance within the company. As a result, the total equity of General Mills rose to $10.8bn from $9.8bn.
Technicals
From a technical perspective, its stock is trading at around $86.91 a share. The stock has been in an uptrend since the 11th of November and support seems to be sat firmly below along the ascending trendline. Support levels sit at $86.31 then at $85.61 then $84.81. A slip below $84.81 could see the price break through the trendline and form a bearish trend. On the other hand, towards the upside, resistance sits at $87.14 then at $87.54 then at $87.78. A break above $87.78 may see the price hike back up towards its all-time high of $88.33 a share (red oval). Looking at the indicators, MACD is currently negative, but RSI is neutral (almost positive) as it reads 54.
Summary
To summarise, the gross profit did fall slightly in 2022, but revenue continued to grow with net income still reporting an increase of $400m YoY after tax and expenses. Yes, the value of total assets declined, but so did the value of total liabilities and by a much bigger margin. Therefore, the company managed to increase the total value of its equity. Overall, the financials are fairly strong. Based on the technicals, the uptrend remains in place with the support established below. More upside in the short-term is more than likely with the key resistance above at $88.33 (red oval). Indicators do suggest a mixed outlook, however, the company is set to release its quarterly earnings tomorrow. A positive report may provide the momentum for a bounce higher towards that key level, although a negative report may see the price really test the support levels below.
