Kellogg (K, $63.10) beats Q2 earnings and sales expectations
Kellogg Co. beat analysts’ expectations on its second quarter sales and earnings.
Excluding items, the food manufacturing company earned 99 cents per share, surpassing analysts’ expectations of 92 cents.
However, the company’s overall net income plunged -52% year-over-year to $286 million, largely owing to restructuring and divestment costs and a lower tax rate in the prior-year period. Kellogg sold some of its brands ( including Keebler biscuits) for $1.3 billion in April, and announced plans in May and June to restructure its operations in Europe and North America. Higher input costs and a strong dollar also weighed on profits.
Kellogg’s total net sales increased +3% year-over-year to $3.46 billion, beating the average analyst estimate of $3.41 billion, (based on IBES data from Refinitiv). On an organic basis, excluding acquisitions, divestitures and foreign exchange effect, sales climbed +2.3%.
North American net sales, which accounts for nearly two-thirds of Kellogg's overall revenue, rose 1% in the quarter.
The company experienced a +23 percent increase in sales from the its Asia, Middle East and Africa unit.
K sees its Stochastic Oscillator ascends from oversold territory
On December 24, 2024, the Stochastic Oscillator for K moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 70 instances where the indicator left the oversold zone. In of the 70 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 23, 2024. You may want to consider a long position or call options on K as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
K moved above its 50-day moving average on December 20, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where K advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
K may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 215 cases where K Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for K turned negative on December 09, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where K declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.143) is normal, around the industry mean (6.504). P/E Ratio (25.360) is within average values for comparable stocks, (26.887). Projected Growth (PEG Ratio) (3.020) is also within normal values, averaging (2.471). Dividend Yield (0.041) settles around the average of (0.043) among similar stocks. P/S Ratio (1.498) is also within normal values, averaging (66.929).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. K’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a company, which engages in the production and distribution of cereals, cookies, crackers and frozen foods
Industry FoodSpecialtyCandy