Skip to content

In Business.ae

Menu
  • Home
  • News
  • Business
  • Finance
  • Technology
  • Weather
  • General
Menu

Kellogg (K) Beats on Q3 Earnings, Lifts Earnings Guidance

Posted on October 7, 2021October 9, 2021 by Curtis Johnson
Finance

Kellogg (K) Beats on Q3 Earnings, Lifts Earnings Guidance

November 1, 2016 by inbusiness
0 0 0 0

Kellogg Company K posted an earnings beat in the third quarter of 2016 on robust cost savings. However, sales fell short of expectations as improved U.S. cereal trends seen in the fourth quarter could not be sustained.The company raised its earnings guidance for 2016, encouraged by lower effective tax rates in the third quarter. However, it has trimmed its sales outlook owing to currency headwinds.Earnings BeatThird-quarter adjusted earnings of 96 cents per share beat the Zacks Consensus Estimate of 87 cents by 10.3%. Earnings grew 12.9% year over year given the profit margin expansion across all regions and a lower effective tax rate that offset the negative impact of currency translation.Excluding currency headwinds of 4 cents (mostly from the Venezuela business), earnings increased 17.6% year over year.Adjusted earnings exclude costs associated with Project K, a mark-to-market loss and certain other items. Including these items, however, the company’s earnings were 82 cents per share, up 41.4% year over year.Revenues MissKellogg reported revenues of $3.254 billion, down 2.2% year over year. Significant currency headwinds from the re-measurement of the Venezuelan business in mid-2015 resulted in the underperformance. Revenues also missed the Zacks Consensus Estimate of $3.29 billion by 1.1%.Currency hurt sales by 1.5% in the quarter. Acquisitions and dispositions had a positive impact of 0.2%. Accordingly, organic revenues (excluding the impact of acquisitions, dispositions and foreign exchange) declined 1% as against 8.6% growth seen in the previous quarter. The decline can be attributed to trade-inventory reductions in U.S. cereal, softness in U.K. cereal, and portfolio transitions in U.S. Frozen and Kashi businesses. Excluding Venezuela, organic sales growth decreased 2.6%.Volumes declined 1.8%, wider than the 1.6% drop in the preceding quarter. On the other hand, price/mix added 0.8% to sales, lower than the 10.2% contribution in the last quarter.Profits RiseKellogg’s adjusted operating profit grew 3.4% to $482 million, partly hit by currency headwinds of 3.5%. Profits deteriorated in Europe but improved in North America, Latin America and Asia-Pacific.However, excluding currency impact, adjusted operating profit surged approximately 5% on strong Project K cost savings.Segment DiscussionNorth America: Kellogg’s North America sales declined 2.2% (down 2.3% organically) year over year to $2.21 billion. However, the decline in organic revenues was lower than a 3.2% drop in the previous quarter. Volumes declined 1.9%, as compared with a 2.4% decrease in the previous quarter.  Price/mix was down 0.4% as against growth of 0.8% in the previous quarter. Adjusted operating profit rose 4.6% organically in North America.Europe: Segment revenues of $594 million declined 5.4% due to currency headwinds. Organically, sales were 6.7% down in the third quarter as against flat growth seen in the last quarter. Organic operating profit declined by $1 million in Europe.Latin America: Segment revenues of $197 million dropped 2.5% due to currency headwinds. Organic operating profit increased 21.7% in Latin America.Asia Pacific: Segment revenues of $248 million improved 5.5% led by strong growth across the region for Pringles. Organically, sales increased 6.1%. Organic operating profit grew 15% in the Asia Pacific.2016 ViewsThe company now expects to grow a little less than 4% on a currency-neutral comparable basis and down 1% (excluding Venezuela). The latter is a reduction from previous guidance of flat.The company now expects adjusted constant currency earnings (including the impact of Venezuela) in the range of $4.16-$4.23 per share, up from the previous $4.11-$4.18 range.However, including currency impact, adjusted EPS guidance is now forecasted between $3.64 and $3.71.Adjusted constant currency operating profit growth projection, including benefits from Venezuela, remained in the range of 15%-17%.Kellogg holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.Better-ranked food stocks include ConAgra Foods, Inc. CAG, The Kraft Heinz Co. KHC and Lancaster Colony Corp. LANC, all with a Zacks Rank #2 (Buy).

KELLOGG CO Price, Consensus and EPS Surprise

KELLOGG CO Price, Consensus and EPS Surprise | KELLOGG CO Quote

Confidential from ZacksBeyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CONAGRA FOODS (CAG): Free Stock Analysis Report KELLOGG CO (K): Free Stock Analysis Report KRAFT HEINZ CO (KHC): Free Stock Analysis Report LANCASTER COLON (LANC): Free Stock Analysis Report To read this article on Zacks.com click here. 

Share your article

Read More

Related posts:




–
November 1, 2016

America Movil (AMX) Lags Earnings, Tops Revenues in Q3




–
November 1, 2016

Grupo Televisa (TV) Q3 Earnings Lag, Revenues Improve Y/Y




–
November 1, 2016

Dominion (D) Tops on Q3 Earnings & Revenues; Keeps View




–
November 1, 2016

Affiliated Managers (AMG) Q3 Earnings Beat on Lower Costs




–
November 1, 2016

TOTAL (TOT) Misses Q3 Earnings Estimates; Revenues Beat




–
November 1, 2016

Gambling Stock Roundup: Focus on Q3 Earnings, Nevada Revenues Rise…




–
November 1, 2016

Lions Gate Entertainment (LGF): What’s Up for Q2 Earnings?




–
November 1, 2016

Fujifilm (FUJIY) Q2 Earnings Improve, Revenues Decline Y/Y




–
November 1, 2016

Telefonica (TEF) Beats Earnings & Revenues Estimates in Q3




–
November 1, 2016

Methanex (MEOH) Q3 Loss Lower than Expected, Sales Beat




–
November 1, 2016

Loews (L) Q3 Earnings Beat Estimates, Revenues Rise Y/Y




–
November 1, 2016

CDW Corp. (CDW) Q3 Earnings: Will it Pull Off a…




–
November 1, 2016

LyondellBasell (LYB) Beats on Q3 Earnings and Revenues




–
November 1, 2016

Cummins (CMI) Beats Q3 Earnings Estimates, Revises View




–
November 1, 2016

Cooper Tire (CTB) Beats on Q3 Earnings, Misses Revenues




–
November 1, 2016

Iron Mountain (IRM) Lags Q3 FFO Estimates, Cuts Guidance




–
November 1, 2016

Fidelity (FIS) Beats on Q3 Earnings, Misses Sales Estimates




–
November 1, 2016

Pitney Bowes (PBI) Misses Q4 Earnings, Reiterates Guidance




–
November 1, 2016

Mosaic (MOS) Tops Q3 Earnings and Revenue Estimates




–
November 1, 2016

Armstrong World (AWI) Q3 Earnings in Line, Revenues Beat




–
November 1, 2016

Agnico Eagle (AEM) Beats Q3 Earnings, Sales Estimates




–
November 1, 2016

Diamond Offshore’s (DO) Q3 Earnings Beat, Revenues Miss




–
November 1, 2016

Tesoro Corporation (TSO) Q3 Earnings Beat; Revenues Miss




–
November 1, 2016

Regency Centers’ (REG) Q3 FFO in Line, Revenues Surpass




–
November 1, 2016

Vulcan Materials (VMC) Misses on Earnings & Revenues in Q3




–
November 1, 2016

Cincinnati Bell (CBB) Beats Q3 Earnings, Keeps 2016 View




–
November 1, 2016

j2 Global (JCOM) Q3 Earnings Beat Estimates; Dividend Up




–
November 1, 2016

CNOOC’s (CEO) Q3 Revenues Decline Y/Y on Lower Oil Price




–
November 1, 2016

Spectra Energy (SE) Earnings Beat, Revenues Miss in Q3




–
November 1, 2016

RenaissanceRe (RNR) Q3 Earnings, Revenues Lag Estimates




–
November 1, 2016

CNO Financial (CNO) Q3 Earnings, Revenues Top; Rise Y/Y




–
November 1, 2016

Host Hotels (HST) Q3 FFO Beats, Rate & Occupancy Improve




–
November 1, 2016

Tenneco’s (TEN) Q3 Earnings Beat Estimates, Revenues Lag




–
November 1, 2016

S&P Global (SPGI) Q3 Earnings & Revenues Beat Estimates




–
November 1, 2016

Avon (AVP) Q3 Earnings Miss, Updates Transformation Plan




–
November 1, 2016

Fitbit (FIT) Q3 Earnings Beat, Revenues Match Estimates




–
November 1, 2016

Wynn Resorts (WYNN) Q3 Earnings, Revenues Lag; Stock Hit




–
November 1, 2016

Jones Lang LaSalle (JLL) Q3 Earnings Lag, Fall Y/Y; Sales…




–
November 1, 2016

Red Robin (RRGB) Q3 Earnings Meet Estimates, Sales Top

0 0 0 0

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Researchers to explore ‘hidden secrets’ under Qatar’s waters
  • 7 apps to help your business grow on Facebook
  • Money & Me: Co-founder of UAE-based online marketplace strives for a fine balance
  • Espagne : Timoteo Mendieta FR
  • Ukraine exhibition explores our "fragile state"

Categories

  • Bankruptcy
  • Black Dress
  • Business
  • Finance
  • General
  • News
  • Technology
  • Weather
© 2022 In Business.ae | Powered by Superbs Personal Blog theme