General Mills shares fell Tuesday after the food company reported fiscal second-quarter profit that missed expectations.
Net income for the quarter was $597.2 million, below Wall Street estimates of $624.1 million. Adjusted earnings of 99 cents a share missed the FactSet consensus of $1.05. Sales of $5.02 billion in the quarter beat estimates of $4.8 billion.
Shares of General Mills (ticker: GIS) fell 4.1% to $65.01 on Tuesday.
The seller of branded foods also said it experienced inflation and supply-chain headwinds in the quarter, with operating profit falling 13% to $800 million.
General Mills, however, said that potential changes in consumer behavior and increases in the pet population driven by the pandemic will create ongoing demand for food at home and tailwinds for pet foods.
The company boosted its sales outlook for fiscal 2022 to reflect "stronger net sales growth, higher costs, and the impact of the European Yoplait divestiture."
It now expects organic net sales growth of 4% to 5% vs. previous expectations of down 1% to 3%. Analysts tracked by FactSet predict sales of $18.29 billion for the fiscal year ending in May.