General Mills (GIS) investors are prepared for a "muted" report on both the top and bottom line when the company reports its fiscal Q3 results March 18, UBS research said in a note to clients late Tuesday.

For fiscal Q3, UBS lowered its earnings per share estimate to $0.76 from $0.79 previously, compared with analysts' consensus expectations of $0.75, and expects consolidated organic sales to fall 2.6% from a year earlier. For fiscal 2026, UBS said it anticipates an adjusted earnings of $3.44 per share compared with the company's implied guidance of $3.37 to $3.54, and organic sales to fall 2.1% versus General Mills' guidance range of a decline of 1.5% to 2% and analysts' consensus expectations of a 1.5% decline.

The UBS researchers added they do not expect General Mills to give formal guidance or commentary on fiscal 2027 but may give "some commentary on the building blocks to a degree." UBS estimates General Mills' fiscal 2027 earnings to be $3.32 per share.

UBS also kept its 'Sell' rating on the stock, but lowered its price target to $40 from $46.

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