Kellogg (K) Tops Q1 EPS by 7c, Revs Miss Slightly; Lowers FY17 Net Sales Outlook, Affirms EPS

Kellogg (NYSE: K) reported Q1 EPS of $1.06, $0.07 better than the analyst estimate of $0.99. Revenue for the quarter came in at $3.25 billion versus the consensus estimate of $3.28 billion. Currency-Neutral Comparable Diluted was $1.09

"In the first quarter, we managed through an unusually challenging environment for packaged food companies, including a period of industry-wide softening of consumption trends," said John Bryant, Kellogg Company’s chairman and chief executive officer. “We got off to a slow start on net sales, as mentioned previously, but we expect sequential improvement in coming quarters, and our productivity initiatives enabled us to stay on track toward our full-year 2017 forecasts for currency-neutral comparable operating profit, earnings and cash flow. We continue to make progress on our 2020 Growth Plan, which directly addresses many of the revenue headwinds we are presently facing, and we have good visibility into continued currency-neutral operating-profit margin expansion."

Because of the slow start in Q1, and to reflect only moderate improvement in developed markets' recent consumption trends, the company now forecasts a decline in currency-neutral comparable net sales of about (3)% in 2017, versus previous guidance of approximately (2)%.

Guidance is also affirmed for earnings per share on a currency-neutral comparable basis. Specifically, the Company still expects to generate growth of 8-10% off a 2016 base that excludes after-tax $0.02 from deconsolidated Venezuela results, to $4.03-$4.09

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

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