Shares of General Mills Inc. was knocked 3.9% lower in premarket trading Wednesday, after the branded consumer foods company reported a fiscal first-quarter profit that beat expectations but revenue that missed. Net income for the quarter to Aug. 25 rose to $520.6 million, or 85 cents a share, from $392.3 million, or 65 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share increased to 79 cents from 71 cents, above the FactSet consensus of 77 cents. Sales fell 2.2% to $4.00 billion, below the FactSet consensus of $4.08 billion. North American retail segment sales were flat at $2.38 billion, topping the FactSet consensus of $2.37 billion; pet sales rose 7% to $368 million, beating expectations of $364.3 million; and convenience stores and foodservice sales fell 4% to $445 million, well below expectations of $471.9 million. Sales in the company’s Europe and Australia and Asia and Latin America segments also fell more than forecast. The company affirmed its full-year organic net sales growth outlook of 1% to 2%. The stock has run up 41.3% year to date through Tuesday, while the SPDR Consumer Staples Select Sector ETF has climbed 19.7% and the S&P 500 has hiked up 19.9%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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