Kellogg (K) reported earnings on Wed 31 Oct 18 (b/o)

** charts after earnings **

 

Kellogg misses by $0.01, beats on revs; raises CC net sales growth outlook, slashes CC Adj-EPS outlook 

Reports Q3 (Sep) earnings of $1.06 per share, excluding non-recurring items, $0.01 worse than the S&P Capital IQ Consensus of $1.07; revenues rose 6.9% year/year to $3.47 bln vs the $3.43 bln S&P Capital IQ Consensus.

Updated Outlook:

• Increased net sales growth outlook to approximately 5% on a currency-neutral basis (Prior 4-5%). This guidance is the high end of the Company's previous guidance range, and it still includes a negative impact of 1% from U.S. Snacks' DSD transition, including its list-price adjustment and rationalization of SKUs. The improved guidance reflects improved net sales and consumption trends.
• Reducing adjusted earnings per share growth outlook to +7-8% on a currency-neutral basis (Prior 11-13%). This revision is driven by the reduction in adjusted operating profit guidance, partially offset by year-to-date favorability in effective tax rate that brings the full-year rate to the low end of previous guidance.
  • Operating profit growth in the fourth quarter will be restrained by similar factors experienced in the third quarter: Increased investments and continued mix shifts and costs as the Company expands its co-packed pack formats.