What Drove Kellogg Co.'s Bottom-Line Beat and Stock Price Rise?

What Drove Kellogg Co.'s Bottom-Line Beat and Stock Price Rise?

Shares of Kellogg Co. (NYSE: K), a leading global producer of cereal, cookies, crackers, and other packaged foods, closed Thursday up a healthy 4.3% after the company reported better-than-expected second-quarter results.

Starting from the top, Kellogg's second-quarter net sales declined 2.5% year over year to $3.19 billion due to consumption softness in the U.S., and lower Pringles sales in Europe. While the top-line result was weaker year-over-year, it still checked in above analysts' consensus estimate, which called for net sales of $3.16 billion, per Thomson Reuters.

That better-than-expected revenue figure filtered down to the bottom line as well. Kellogg's net income increased modestly to $282 million, or $0.80 per share, compared to the prior year; when adjusted for one-time items the company generated earnings of $0.97 per share, which was well ahead of analysts' consensus estimate of $0.92 per share.

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Source: Fool.com