Kellogg Company (NYSE: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.
A couple of years prior to 2015 were tough for Kellogg when it saw sales and profits shrink due to reducing demand. However, product introductions and brand building investments funded by the savings from Project K led to better-than-expected sales trends in 2015, especially in the U.S. cereals businesses.
Investors should note that there has mostly been positive earnings estimate revisions for K over the past 60 days. Moreover, K has a superb earnings history, with the company delivering positive earnings surprises consecutively over the past four quarters, thereby bringing the average to a positive earnings surprise of 3.84%.
Currently, K has a Zacks Rank #2 (Buy), 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 93 cents/share, and the company reported adjusted EPS of 97 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: K reported revenues of $3.40 billion. This missed our consensus estimate of $3.49 billion.
Key Stats to Note: Organic revenues (excluding the impact of acquisitions, dispositions and foreign exchange) improved 6.6%, better than 4.2% in the previous quarter mainly driven by extraordinary inflation in Venezuela.
Stock Price: Shares did not show any significant movement in pre-market trading.
Check back later for our full write up on this K earnings report later!
KELLOGG CO (K): Free Stock Analysis Report
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