The 10-second takeaway
For the quarter ended March 31 (Q1), Kellogg missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share didn't change.
Margins dropped across the board.
Kellogg logged revenue of $3.44 billion. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $3.54 billion on the same basis. GAAP reported sales were 1.3% lower than the prior-year quarter's $3.49 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.95. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.98 per share on the same basis. GAAP EPS of $1.00 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.9%, 110 basis points worse than the prior-year quarter. Operating margin was 15.6%, 100 basis points worse than the prior-year quarter. Net margin was 10.4%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.41 billion. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $13.93 billion. The average EPS estimate is $3.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 850 members out of 930 rating the stock outperform, and 80 members rating it underperform. Among 275 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 262 give Kellogg a green thumbs-up, and 13 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 $55.37.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.