The 10-second takeaway
For the quarter ended March 30 (Q1), Kellogg missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Kellogg chalked up revenue of $3.86 billion. The 15 analysts polled by S&P Capital IQ hoped for sales of $3.94 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $3.44 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 $0.99. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. Non-GAAP EPS of $0.99 for Q1 were 4.2% higher than the prior-year quarter's $0.95 per share. GAAP EPS of $0.85 for Q1 were 15% lower than the prior-year quarter's $1.00 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 36.1%, 380 basis points worse than the prior-year quarter. Operating margin was 13.0%, 260 basis points worse than the prior-year quarter. Net margin was 8.1%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.84 billion. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $15.20 billion. The average EPS estimate is $3.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 870 members out of 954 rating the stock outperform, and 84 members rating it underperform. Among 295 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 277 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 $60.65.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.