The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Kellogg beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Kellogg booked revenue of $3.56 billion. The 17 analysts polled by S&P Capital IQ hoped for revenue of $3.44 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $3.02 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 $0.67. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. GAAP EPS were -$0.09 for Q4 against $0.65 per share for 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 33.0%, 800 basis points worse than the prior-year quarter. Operating margin was 0.1%, 1,320 basis points worse than the prior-year quarter. Net margin was -0.9%, 860 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.93 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $15.20 billion. The average EPS estimate is $3.72.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 877 members out of 962 rating the stock outperform, and 85 members rating it underperform. Among 296 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 278 give Kellogg a green thumbs-up, and 18 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 $55.95.
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