How Did General Mills’ Stock React to Its Fiscal 3Q16 Results?

Did General Mills Impress with Its Fiscal 3Q16 Results?

(Continued from Prior Part)

Stock’s reaction to earnings

General Mills’ (GIS) stock didn’t react much to the fiscal 3Q16 earnings release. It moved up slightly by 0.36% to close at $61.01 compared to March 22’s closing price of $60.79.

General Mills’ shares have gained 8% since the company reported its fiscal 2Q16 results on December 17, 2015. The shares have been on a rising trend since then and have risen 8% so far in 2016 as of March 28, 2016.

The stock rose as much as 8.5% in 2015. As of March 28, General Mills has outperformed the general market, represented by the S&P 500 Index, by 6.5%. The stock rose as much as 8.5% in 2015. General Mills has outperformed the general market as of March 28 by 6.5%.

Peers in the industry

Based in Minneapolis, Minnesota, General Mills and its three segments manufacture and market branded consumer foods in the United States and internationally. As part of the processed and packaged goods industry, General Mills’ key brands include Cheerios, Fiber One, Haagen-Dazs, Nature Valley, Yoplait, Betty Crocker, Pillsbury, and Old El Paso.

So far in 2016, General Mills’ peer Campbell Soup (CPB) has returned 23%. ConAgra Foods (CAG) has returned 7%, and Kellogg Company (K) has returned 6%. On March 28, these companies closed at $63.38, $44.28, and $75.67, respectively.

The Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS) invests 2.5% of its portfolio in General Mills. It also invests 8% in the peer stocks. The Guggenheim Defensive Equity ETF (DEF) also invests 1.08% in CPB.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - What Caused General Mills’ Fiscal 3Q16 Earnings to Fall by 7%?

• Part 2 - General Mills’ Fiscal 3Q16: Green Giant Divestiture Caused Sales Dip

• Part 3 - General Mills’ 3Q16: How Segments Fed Sales and Operating Profit