Earnings Roundup: GIS, ZZ, WOR, EXFO
Tuesday, June 29, 2021 6:10 PM

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General Mills (NYSE: GIS) on Tuesday posted a 41 percent drop in fourth-quarter earnings, hurt by lower sales and higher commodity costs. Net income totaled $212 million, or 31 cents a share, compared with net income of $359 million, or 53 cents a share, in the prior-year quarter. On an adjusted basis, the company earned 41 cents a share. Revenue declined 2.1% to $3.6 billion from $3.65 billion in the same quarter last year, which included an extra week. Analysts, on average, expected the company to report earnings of 41 cents per share on revenue of $3.55 billion. Gross margin dropped to 36.2% from 42.4%. Looking ahead, the company said that it expects fiscal 2011 earnings per share to increase to approximately $2.46 to $2.48 before any effects of mark-to-market valuation. This EPS guidance represents growth of 7 to 8 percent from 2010 results excluding mark-to-market effects and the tax charge related to health care legislation. Analysts currently expect the company to earn $2.51 per share. 

"We expect fiscal 2011 to be another year of quality growth for General Mills," said Chairman and Chief Executive Officer Ken Powell. The company's plans for 2011 assume 4 to 5 percent inflation in supply-chain costs. Noncash pension and post-retirement expense will be higher in 2011, reflecting a 165 basis point decrease in the discount rate year-over-year. Net sales are expected to grow at a low single-digit rate."

Shares of the company plunged more than 4% in extended trading.

Sealy Corporation (NYSE: ZZ) said late Tuesday that it swung to a second-quarter profit of $849,000, or 1 cent a share, compared with a loss of $5.39 million, or 6 cents a share, in the year-earlier period. On an adjusted basis, the company earned 2 cents a share in the latest quarter. Revenue rose 6.1% to $316.5 million. Analysts, on average, expected the company to report earnings of 2 cents per share on revenue of $319.86 million. Gross margin declined by 35 basis points to 40.5% from the prior year quarter, driven by changes in product mix and investments associated with new product introductions.

"We are pleased with our second quarter 2010 results and the strategic actions completed throughout the quarter. We delivered our third consecutive quarter of year-over-year sales growth, driven by both domestic unit and Average Unit Selling Price (AUSP) growth. Our Stearns & Foster line continues to perform extremely well and take market share in the premium bedding category. Our focus on developing and bringing new and innovative products to market continued, as we began rolling out the Sealy Promotional line and prepare to roll out the Embody specialty bedding line over the remainder of the year. We expect these new products to drive future market share gains in both innerspring and the fast growing specialty sector, while better positioning us to take advantage of resurgent luxury price points with both Stearns & Foster and Embody," stated Larry Rogers, Sealy's President and Chief Executive Officer.

Shares of Sealy Corp. declined more than 3% in evening trade.

Worthington Industries Inc. (NYSE: WOR) said Tuesday that it swung to a fiscal fourth-quarter profit of $33.1 million, or 42 cents a share, compared with a loss of $13.7 million, or 17 cents a share, in the comparable period last year. Revenue climbed to $626.4 million from $471.6 million. Analysts, on average, expected the company to report earnings of 28 cents per share on revenue of $525 million.

"We began to recover from the global recession this fiscal year, rebounding from the only year with an earnings loss in Company history in fiscal year 2009," said John P. McConnell, Chairman and CEO. "We have optimized our existing businesses and captured growth opportunities that fit our strategy. As we begin our new fiscal year, we will stay focused on growing the business both organically and through new acquisitions. Our operational efficiency improvement consolidated sourcing and customer service will continue to be the drivers that lead us to sustainable earnings. We believe the economic environment in which we operate will continue to improve, though not linearly, over the next 24 months."

EXFO Inc. (NASDAQ: EXFO) reported that its third quarter net income totaled $0.2 million or breakeven per share, compared to net loss of $23.3 million or 39 cents per share, in the corresponding quarter last year. Revenue surged 44.9% to $63.21 million from $43.64 million. Analysts, on average, expected the company to report earnings of 4 cents per share on revenue of $62.93 million. Gross margin reached 62.3% of sales in the third quarter of fiscal 2010 compared to 62.3% in the third quarter of 2009 and 60.0% in the second quarter of 2010.  Looking ahead, EXFO expects revenue in the range of $61 million and $66 million and GAAP net results between a loss of 1 cent per share and earnings of 3 cents per share for the fourth quarter of 2010. 

"I'm quite pleased with our execution so far in fiscal 2010 as we continue to outperform our industry through robust organic sales growth, while initiating key transformations like the recent acquisition of wireless test leader NetHawk to benefit from exciting growth opportunities for years to come," said Germain Lamonde, EXFO's Chairman, President and CEO.

Disclosure: Author doesn’t own any of the stocks discussed here.

 

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User SymbolConsen EPSEstimate EPSActual EPS
Jim OPNT$0.10$0.09$0.07
XXXXX MNT$0.33$0.33$0.35
XXXXX OPNT$0.10$0.05$0.07
XXXXX PETM$0.33$0.33$0.34
XXXXX JBX$0.70$0.82$0.80
XXXXX HPQ$0.69$0.70$0.70
XXXXX OPNT$0.10$0.09$0.07
XXXXX CHUX$0.31$0.35$0.36
XXXXX HPQ$0.69$0.70$0.70
XXXXX CRM$0.01$0.00$0.01

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