General Mills Raises Outlook; Shares Get Boost

General Mills said it expects earnings for the recently ended fiscal year to beat expectations after a 13 percent sales gain in the fourth quarter.

The maker of Cheerios cereal, Progresso soup and Yoplait yogurt said it now expects to report earnings of about $3.52 a share, before one-time gains, up 11 percent from reported earnings a year earlier.

General Mills had previously forecast earnings per share of $3.45 to $3.47, before one-time items, for the year ended May 25. Analysts on average forecast $3.48, according to Reuters Estimates.

Shares gained 2.5 percent in premarket trading.