S&P 500 (NYSE:SPY) component Kellogg Company (NYSE:K) will unveil its latest earnings on Thursday, July 28, 2011. Kellogg Company, with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods, including cookies, crackers and toaster pastries. PepsiCo Inc. Earnings Cheat Sheet: Another Solid Sales Quarter>>
Kellogg Company Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 91 cents per share, a rise of 2.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 89 cents. Between one and three months ago, the average estimate moved up, and has risen from 90 cents during the last month. For the year, analysts are projecting net income of $3.48 per share, a rise of 2.4% from last year.
Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the first quarter, it reported profit of $1 per share versus a mean estimate of $1.04. Two quarters ago, it reported net income of 51 cents per share.
Wall St. Revenue Expectations: On average, analysts predict $3.29 billion in revenue this quarter, a rise of 7.5% from the year ago quarter. Analysts are forecasting total revenue of $13.16 billion for the year, a rise of 6.1% from last year’s revenue of $12.4 billion.
Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy, three rating it as a sell and five rating it as a hold.
A year-over-year revenue increase in the first quarter snaps a streak of three consecutive quarters of revenue declines. Revenue rose 5% in the first quarter and fell 1.4% in the fourth quarter of the last fiscal year, 3.7% in the third quarter of the last fiscal year and 5.2% in the second quarter of the last fiscal year.
The decrease in profit in the first quarter comes after net income rose in the previous quarter. In the first quarter, net income fell 12.4% to $366 million. In the fourth quarter of the last fiscal year, net income rose 7.4%.
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).
Stock Price Performance: During June 23, 2011 to July 22, 2011, the stock price had risen $1.79 (3.3%) from $54.12 to $55.91. The stock price saw one of its best stretches over the last year between December 7, 2010 and December 20, 2010 when shares rose for 10-straight days, rising 5% (+$2.41) over that span. It saw one of its worst periods between January 21, 2011 and February 1, 2011 when shares fell for eight-straight days, falling 3.4% (-$1.73) over that span. Shares are up $5.58 (+11.1%) year to date.
(Source: Xignite Financials)