Jocelynn Drake (jdrake@sir-inc.com) General Mills (GIS) said its second-quarter net income rose 9% to $613.9 million, or 92 cents a share, from $565.5 million, or 83 cents a share, in the year-ago period. Adjusted net income fell to 76 cents a share, from 77 cents a share. The food giant's revenue rose 0.8% to $4.1 billion. Wall Street analysts expected General Mills to earn 78 cents a share, on revenue of $4.1 billion.
General Mills continues to expect adjusted 2011 earnings of $2.46 a share to $2.48 a share, compared to the analyst target of $2.48 a share.
Optimism dominates the stock's sentiment backdrop. The Schaeffer's put/call open interest ratio for GIS comes in at 0.46, as call open interest doubles put open interest among options slated to expire in less than three months. This ratio of puts to calls is lower than 81% of all those taken during the past year. In other words, short-term options players have been more optimistically aligned toward the shares only 19% of the time during the past 12 months.
Meanwhile, Wall Street is smitten with the shares. According to Zacks, the stock has earned 15 "buy" ratings and just four "hold" ratings.
Technically speaking, the shares of GIS are up nearly 3% since the start of 2010. The stock is stuck in a sideways channel between resistance in the 39 area and support in the 33 region. It appears the equity is consolidating its gains after rising from its March 2009 low in the 24 area to its high in the 39 region.
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