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.
Source: Fool.com
Kellogg Co. Stock
Our community is currently high on Kellogg Co. with 5 Buy predictions and 0 Sell predictions.
On the other hand, the target price of 68 € is below the current price of 72.86 € for Kellogg Co., so the potential is actually -6.67%.
