Kellogg (NYSE: K) reported Q4 EPS of $0.96, in-line with the analyst estimate of $0.96. Revenue for the quarter came in at $3.2 billion versus the consensus estimate of $3.08 billion.

The Company issued financial guidance for 2018:

• Net sales flat on a currency-neutral basis. The October 2017 acquisition of RXBAR contributes 1-2 percentage points of this growth. This implies an organic decline of 1-2%, of which 1 percentage point of the decline is related to the negative impact of U.S. Snacks’ DSD transition, including its list-price adjustment and rationalization of stock-keeping units (SKU). The remainder of the business is flat to down 1%, an improvement from 2017.

• Adjusted OP +4-6% on a currency-neutral basis. The acquired RXBAR contributes 1-2 percentage points of this growth, while the rest of the growth is driven by remaining Project K and ZBB savings, partially offset by an increase in Brand Building. The resultant operating profit margin reaches the Company’s publicly stated margin-expansion target, excluding the restatement for the change in pension accounting.

• Adjusted EPS +9-11% on a currency-neutral basis. U.S. Tax Reform contributes 5-6 percentage points of this growth, even after the Company uses some of its favorability to mitigate risk in its pension plans, via a less aggressive investment mix and potentially making cash contributions, and on its balance sheet, through reduction of debt.

• Cash Flow guidance. The Company projects cash from operating activities to increase to $1.7-1.8 billion in 2018, driven by higher net income, sustained working-capital improvement, and benefits from U.S. Tax Reform. With capital expenditure remaining roughly flat at $0.5 billion, this implies Cash Flow of $1.2-1.3 billion.

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