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.
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