Kellogg (K) Tops Q2 EPS by 11c

Kellogg (NYSE: K) reported Q2 EPS of $1.14, $0.11 better than the analyst estimate of $1.03. Revenue for the quarter came in at $3.56 billion versus the consensus estimate of $3.41 billion.

Kellogg Affirms Full-Year Financial Guidance, as Increased Net Sales Outlook Offsets Higher Costs:

Kellogg Company affirmed its full-year financial guidance on operating profit, earnings per share and cash flow, as an improved outlook for net sales is offset by the impact of industry-wide supply chain challenges and high cost inflation expected to persist in the second half. Specifically, the Company updated its guidance as follows:

•Organic net sales growth is now expected to be 0-1% in 2021, an increase from previous guidance for flat net sales, reflecting recent momentum in the business, and despite lapping last year's exceptional growth. This implies a 2-year compound annual growth rate of almost 3%.
•The outlook for currency-neutral adjusted operating profit is unchanged, calling for a decline of approximately (1)% - (2)% year on year as it laps last year's exceptional growth. This equates to a 2-year compound annual growth rate of almost 4% excluding since-divested businesses from the 2019 base.
•The outlook for currency-neutral adjusted earnings per share is unchanged at approximately +1% - 2% growth. This implies a 2-year compound annual growth rate of almost 5% excluding since-divested businesses from the 2019 base.
•The outlook for net cash provided by operating activities is unchanged at approximately $1.6 - $1.7 billion, with capital expenditure of approximately $0.5 billion. As a result, the outlook for cash flow remains at $1.1 - $1.2 billion.
Excluded from this guidance are any significant supply chain or other prolonged market disruptions related to the pandemic, global economy, or other unexpected events that may be realized in the second half of the year.

For earnings history and earnings-related data on Kellogg (K) click here.

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