Kellogg (K) Tops Q1 EPS by 6c
Get Alerts K Hot Sheet
EPS Growth %: -22.7%
Financial Fact:
Income taxes: 62M
Today's EPS Names:
DGICA, UXIN, TOWN, More
Join SI Premium – FREE
Kellogg (NYSE: K) reported Q1 EPS of $1.01, $0.06 better than the analyst estimate of $0.95. Revenue for the quarter came in at $3.52 billion versus the consensus estimate of $3.54 billion.
Kellogg is updating its guidance solely to provide further indications of the likely impact of the pending divestiture of selected cookies, fruit snacks, pie crusts, and ice-cream cones businesses, which was announced in early April, and is expected to close in late July. Specifically:
• The divestiture likely reduces 2019 net sales by approximately 2-3%. On top of an unchanged outlook for the overall business, this would suggest approximately 1-2% growth in currency-neutral net sales in 2019, with no change to the outlook for organic growth of 1-2%.
• The divestiture likely reduces 2019 adjusted operating profit by approximately 4-5%. On top of an unchanged outlook for the overall business, this would suggest a decline of about 4-5% in currency-neutral adjusted operating profit in 2019. This reflects the absence of the revenue and direct costs of the divested businesses, and only preliminary reductions in their indirect costs.
• The divestiture likely reduces 2019 adjusted earnings per share by less than 5%. This was disclosed in early April, upon the announcement of the pending sale. On top of an unchanged outlook for the overall business, this would suggest a decline of approximately 10-11% in currency-neutral adjusted EPS in 2019.
The Company affirms its previous guidance for cash flow to be roughly flat year-on-year before any divestiture impact. The Company will provide a cash flow impact for the divestiture at a later time, as details get finalized on items such as transition services and outlays related to business realignment.
For earnings history and earnings-related data on Kellogg (K) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bristol-Myers Squibb (BMY) stock slips despite earnings beat
- American Airlines (AAL) Misses Q1 EPS by 7c, Guidance Beats
- Comcast (CMCSA) stock climbs after topping earnings, revenue estimates
Create E-mail Alert Related Categories
EarningsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!