Kellogg Company K has a balanced portfolio of cereal and snack products. Popular brands include Kellogg’s, Keebler, Pop-Tarts, Eggo, Cheez-It, Ready Crust and Kashi.
Kellogg is known for its solid brand positioning, geographic diversity and significant investments in innovation.
Kellogg was struggling to grow sales over the past two years mainly due to weak performance in its developed market cereals and U.S. snacks businesses. In this regard, the company is investing in brand building, in-store capabilities and product and packaging innovation as well as reformulating many existing products. Moreover, cost savings from its re-structuring program, Project K, are funding renovation, innovation and brand support which led to better-than-expected results in the first half of 2015.
Investors should note that there has not been any significant earnings estimate revisions for K over the past 60 days. However, K has a decent history in earnings season delivering positive earnings in three out of the past four quarters, bringing the average to a positive earnings surprise of 0.55%.
Currently, K has a Zacks Rank #3 (Hold), but that could definitely change following Kellogg’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: K beat on earnings. Our consensus earnings estimate called for EPS of 83 cents/share, and the company reported adjusted EPS of 85 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: K reported revenues of $3.33 billion. This missed our consensus estimate of $3.44 billion.
Key Stats to Note: Organic revenues (excluding the impact of acquisitions, dispositions and foreign exchange) improved 1.0%, better than 0.1% in the previous quarter.
Stock Price: Shares declined 3% in pre-market trading.
Check back later for our full write up on this K earnings report later!
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