General Mills stocks rallied for two consecutive days after raising its annual full-year guidance following a better-than-expected quarterly profit.
On Wednesday’s closing bell, the company’s shares rose by 5.72% to $79.72 apiece followed by a high pre-market session on Thursday, wherein it rallied by 0.31% to $79.97 per share.
For its fiscal Q1 2023, the Minnesota-based firm’s adjusted earnings per share came at $1.11, surpassing the market estimates of $0.99. Yet, it declined from the prior record of $1.12.
Consequently, its sales revenue was $4.72 billion, in line with analysts’ consensus but below the precursory reading of $4.89 billion.
For the full-fiscal year 2023, executives anticipate its organic net sales to grow between 6.00% and 7.00%, higher than its prior forecast of 4.00% to 5.00%.
Packaged food makers, including General Mills, have been steadily raising prices on all of their products as they aim to insulate their margins from increased costs tied with labor, ingredients, and transportation without pushing away consumers.
As the American inflation soared to 40-year highs, more and more consumers preferred cooking more at home, which first developed during the coronavirus pandemic.
Hence, GIS is forecasted to be more profitable as shoppers try to stretch their budget amid surging energy and food prices.
On the technical side, General Mills traverses the support level of $77.04 and the resistance zone of $81.04, respectively.
It also trades between the Fibonacci retracement swing low of $79.32 and swing high of $81.48, with a pivot point of $80.40.
Moreover, its Relative Strength Index (RSI) reading surpassed the 50.00 level and is now sitting at 67.27m implying buy action.
Regarding the asset’s moving average, its 200-day SMA and 200-day EMA are located at 76.72 and 76.28, which could be translated as bullish.