The 10-second takeaway
For the quarter ended June 30 (Q2), Kellogg beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank.
Margins dropped across the board.
Kellogg notched revenue of $3.47 billion. The 17 analysts polled by S&P Capital IQ wanted to see net sales of $3.38 billion on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $3.39 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 $0.93. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.84 per share. GAAP EPS of $0.84 for Q2 were 11% lower than the prior-year quarter's $0.94 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 40.7%, 190 basis points worse than the prior-year quarter. Operating margin was 14.0%, 220 basis points worse than the prior-year quarter. Net margin was 8.7%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.72 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $14.08 billion. The average EPS estimate is $3.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 884 members rating the stock outperform and 84 members rating it underperform. Among 290 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 273 give Kellogg a green thumbs-up, and 17 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 $53.09.
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