Kellogg reported its latest quarter results, which revealed better-than-expected adjusted earnings per share and revenue.
The breakfast cereal maker’s adjusted earnings came in at $1.03, ahead of the 91-cent FactSet consensus expectation.
Sales fell - 2.8% year-over-year to $3.37 billion in the quarter, but still exceeded analysts’ estimate of $3.35 billion (based on FactSet poll).
The decline in sales were largely due to the divestiture of the cookie, fruit snack, pie crust and ice cream cone businesses. Unfavorable foreign-currency translations also affected performance. However, organic sales rose more than +2%.
Within North America, Kellogg’s organic growth was bolstered by brands including Pringles potato chips, Cheez-It snacks, Rice Krispies Treats and Pop-Tarts.
Currency headwinds hurt net sales in Europe, Latin America, and Asia-Pacific-Mideast-Africa.
Kellogg expects its currency-neutral adjusted earnings per share to decline by about -10%, vs. prior expectation of a reduction of -10% to -11% - the modified outlook follows a lower expected tax rate and higher-than-expected other income.
The company projects full-year net sales growth of +1% to +2% from the year earlier.
K saw its Momentum Indicator move above the 0 level on October 15, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 67 cases where K's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where K advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 227 cases where K Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 .
K broke above its upper Bollinger Band on October 15, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 81, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 (6.502). 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 (66.254).
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.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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