BUZZ-PREVIEW: General Mills rev, earnings seen falling as consumer demand eyed

The maker of Cheerios cereal and other packaged foods is seen posting a nearly 4% year-over-year drop in fiscal first-quarter revenue to $4.3 billion and adjusted earnings per share of $0.72 versus $0.86 a year ago, according to LSEG data.

Earlier this month, General Mills sued top U.S. sugar producers, alleging a price-fixing conspiracy that inflated its ingredient costs.

In its last report, the company cited resilient demand for pantry staples but a 4% decline in its key North America Retail segment.

With the move, the stock is down about 23% year to date, well underperforming a roughly 7% gain in the S&P 500 Consumer Staples sector and a roughly 13% rise in the S&P 500.

The stock recently traded at 11 times forward earnings, versus its five-year average of 15 times, according to LSEG.

Of 21 analysts covering General Mills, 3 rate the stock "strong buy" or "buy", 14 "hold", and 4 "sell" or "strong sell"; the median price target is $38.

Shares of General Mills $GIS.N were gaining 0.5% to $35.60 in early afternoon trading on Tuesday ahead of quarterly results due before the bell on Wednesday, with investors focused on consumer demand trends and higher prices.