S&P 500 (NYSE:SPY) component Kellogg Company (NYSE:K) reported its results for the second quarter. Kellogg Company, with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods, including cookies, crackers and toaster pastries.
Kellogg Company Earnings Cheat Sheet for the Second Quarter
Results: Net income for the processed and packaged goods company rose to $343 million (94 cents per share) vs. $302 million (79 cents per share) in the same quarter a year earlier. This marks a rise of 13.6% from the year earlier quarter.
Revenue: Rose 10.6% to $3.39 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: K beat the mean analyst estimate of 91 cents per share. It beat the average revenue estimate of $3.29 billion.
Quoting Management: “We continue to build momentum as demonstrated by our solid first half top-line results. During the second quarter, we benefited from improved net price realization and were pleased with the performance of our strong innovation,” said John Bryant, Kellogg Company’s president and chief executive officer. “As we look to the back half of 2011, we expect continued sales growth driven by price and mix and are confident in our innovation line up and commercial plans.”
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of $1 versus a mean estimate of net income of $1.04 per share.
The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 12.4% to $366 million.
The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 5% to $3.48 billion from the year earlier quarter.
The company’s cost of sales rose 10.6% from a year earlier. Last quarter, cost of sales was 57.4% of revenue, similar to a year earlier.
Competitors to Watch: Ralcorp Holdings, Inc. (NYSE:RAH), General Mills, Inc. (NYSE:GIS), Kraft Foods Inc. (NYSE:KFT), Flowers Foods, Inc. (NYSE:FLO), The Hain Celestial Group, Inc. (NASDAQ:HAIN), PepsiCo, Inc. (NYSE:PEP) and TreeHouse Foods Inc. (NYSE:THS).
(Source: Xignite Financials)