Kellogg Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Kellogg (NYSE:K) will unveil its latest earnings on Tuesday, February 5, 2013. Kellogg, with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods, including cookies, crackers, and toaster pastries.

Kellogg Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 65 cents per share, a rise of 1.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 66 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 65 cents during the last month. Analysts are projecting profit to rise by 0.9% versus last year to $3.35.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting profit of 86 cents per share against a mean estimate of net income of 80 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.44 billion in revenue this quarter, a rise of 13.9% from the year-ago quarter. Analysts are forecasting total revenue of $14.08 billion for the year, a rise of 6.7% from last year’s revenue of $13.2 billion.

A Look Back: In the third quarter, profit rose 2.1% to $296 million (82 cents a share) from $290 million (80 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.3% to $3.72 billion from $3.31 billion.

Analyst Ratings: There are mostly holds on the stock with 16 of 20 analysts surveyed giving that rating.

Key Stats:

Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the first quarter and second quarter, profit rose in the third quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 2.6% in the second quarter before climbing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.73 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)