The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Kellogg met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins dropped across the board.
Kellogg reported revenue of $3.72 billion. The 16 analysts polled by S&P Capital IQ anticipated revenue of $3.68 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $3.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.82. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS of $0.82 for Q3 were 2.5% higher than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.8%, 210 basis points worse than the prior-year quarter. Operating margin was 12.9%, 140 basis points worse than the prior-year quarter. Net margin was 8.0%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.44 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $14.03 billion. The average EPS estimate is $3.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 883 members out of 966 rating the stock outperform, and 83 members rating it underperform. Among 297 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 281 give Kellogg a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kellogg is hold, with an average price target of $52.60.
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