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.