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.
On July 26, 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 67 instances where the indicator left the oversold zone. In of the 67 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company, which engages in the production and distribution of cereals, cookies, crackers and frozen foods
Industry FoodSpecialtyCandy