[ACCESSWIRE]
Upcoming AWS Coverage on Campbell Soup Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 10, 2016 / Active Wall St. announces its post-earnings coverage on Kellogg Co. (NYSE: K). The company reported its financial results for the third quarter fiscal 2016 on November 01st, 2016. The corn flakes maker reported earnings that beat expectations, helped by cost-cutting and lower cost of goods sold, but sales declined for the seventh consecutive quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Kellogg's competitors within the Processed & Packaged Goods space, Campbell Soup Co. (NYSE: CPB), is estimated to report earnings on November 22, 2016. AWS will be initiating a research report on Campbell Soup in the coming days.
Today, AWS is promoting its earnings coverage on K; touching on stock like CPB. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=K
http://www.activewallst.com/registration-3/?symbol=CPB
Earnings Reviewed
In the quarter ended on September 30, 2016, Kellogg's net income totaled $292 million, or $0.82 per share, up from $205 million, or $0.58 per share, for the year ago period. Adjusted earnings per share came in at $0.96 per share, breezing past analysts' projections of $0.87 per share. Kellogg's Q3 2016 GAAP earnings per share were up 41% from the prior year's quarter, driven mainly by decreased one-time costs, higher profit margins, and a lower effective tax rate. For the reported quarter, the company's revenue totaled $3.25 billion, down 2.2% from $3.33 billion last year, and missing the $3.26 billion analysts' forecasts. The decline in net sales was attributed to negative currency impact, while currency-neutral comparable net sales declined because of trade-inventory reductions in U.S. cereal, softness in U.K. cereal, and portfolio transitions in its U.S. Frozen and Kashi businesses. During the reported quarter, Kellogg's volumes declined 1.8%, compared to the 1.6% drop in Q2 2016, while price/mix added 0.8% to sales, lower than the 10.2% contribution in the preceding quarter.
Segment Performance
During Q3 2016, sales in Kellogg's North America: region declined 2.2% on y-o-y basis to $2.21 billion. Volumes declined 1.9% compared to a 2.4% decrease in Q2 2016. Price/mix was down 0.4% against growth of 0.8% in the previous quarter. The regions operating profit increased 4.6% on the strength of cost savings under the Project K and Zero-Based budgeting initiatives. The company's European region reported Q3 2016 revenue of $594 million, down 5.4% on currency headwinds. Organically, sales were 6.7% down in the reported quarter as against flat growth seen in Q2 2016. Organic operating profit declined by $1 million in Europe.
During Q3 2016, sales in Kellogg's Latin American region fell 2.5% to $197 million, dropping 2.5% due to currency headwinds. Organic operating profit increased 21.7% in Latin America during the reported quarter. Sales for the company's Asia/Pacific region edged up 5.5% led by strong growth across the region for Pringles. Organically, sales increased 6.1%. Organic operating profit grew 15% in the Asia/Pacific region.
Outlook
For FY16, Kellogg raised its 2016 adjusted earnings forecast in the range of $4.16 per share to $4.23 per share in constant currency terms, from the previous guidance band of $4.11 per share to $4.18 per share. Kellogg has launched "Project K" in 2013 to save up to $475 million annually by 2018, by cutting jobs and optimizing production. For FY17, the Company reiterated its plans to achieve high single digit growth in currency-neutral comparable operating profit in 2017, excluding Venezuela. Currency-neutral comparable net sales, excluding Venezuela, are projected to be flat in 2017, reflecting sequential improvement as we continue to stabilize portions of our business.
Stock Performance
Kellogg's stock dropped by 2.70%, closing Wednesday's session at $74.88 on volume of 1.89 million shares, which was higher than the 3 months average volume of 1.68 million shares. The company's shares gained 5.67% since the beginning of the year. Additionally, the stock has advanced 14.24% in the last twelve months. The company's shares are trading a PE ratio of 37.65 and have a dividend yield of 2.78%.
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SOURCE: Active Wall Street
