Kellogg (K) Reports In-Line Q2 EPS; Boosts FY16 EPS Outlook

Kellogg (NYSE: K) reported Q2 EPS of $0.91, in-line with the analyst estimate of $0.91. Revenue for the quarter came in at $3.27 billion versus the consensus estimate of $3.37 billion.

*** Currency-neutral EPS was $1.00.

GUIDANCE:

Kellogg sees FY2016 EPS of $4.11 - $4.18, versus prior guidance of $4.00 - $4.07 and the consensus of $3.68.

Profit-Margin Outlook for 2017-2018*:

• The company also announced that it has plans to accelerate and increase the previously announced goals for expanding its currency-neutral comparable operating profit margin.
• It now believes it will increase this margin by approximately 350 basis points from 2015 levels, and that it will realize the increase through 2018, an acceleration of two years from its previous guidance. This acceleration comes from a combination of expanding Zero-Based Budgeting across North America and International segments, pursuing a more disciplined approach to revenue growth management, and other potential initiatives.
• These actions are expected to drive accelerated currency-neutral comparable operating profit and earnings growth in 2017 and 2018, even as they contribute to holding net sales flat during that time period.

For earnings history and earnings-related data on Kellogg (K) click here.

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