GIS’s Uniform Adjusted EPS’ is not projected to grow, contrary to as-reported EPS projections, and recent underperformance is therefore warranted

• GIS’s profitability is materially distorted by accounting for long-lived assets and R&D

• As such, their UAFRS EPS is expected to decline to $0.65 in Q4, not grow, and EPS’ over the next four quarters is expected to fall 1%, not grow 17%

• After making the appropriate UAFRS adjustments, GIS is not trading at a 17.8x P/E, but a 24.5x UAFRS-based P/E, which is above valuations of many peers

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Submitted June 21, 2017 at 10:33PM by Valens_Research http://ift.tt/2sSzyyt