Stock Monitor: Farmer Bros. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 6, 2018 / If you want access to our free earnings report on Kellogg Co. (NYSE: K), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=K. The Company reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The maker of Corn Flakes and Fruit Loops' sales rose for the third consecutive quarter. Additionally, the Company updated its guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Kellogg's GAAP net sales increased 4.7% to $3.40 billion compared to $3.25 billion in Q1 2017, attributed to a favorable currency translation, the acquisition of RXBAR, and an improved business delivery. On an organic basis, the Company's net sales increased 0.6%, which was the Company's best performance in several quarters, despite list-price adjustments and other impacts in US Snacks related to its transition from Direct Store Delivery system (DSD). Kellogg's revenue numbers exceeded analysts' estimates of $3.30 billion.
During Q1 2018, Kellogg's operating profit soared 81.7% to $510 million compared to $465 million in Q1 2017, driven by productivity savings and higher net sales, as well as significantly lower restructuring charges and favorable mark-to-market impacts. The Company's operating profit increased 5.1% on a currency-neutral adjusted basis, owing to the higher sales growth and strong productivity savings related to the Project K restructuring program.
For Q1 2018, Kellogg reported earnings of $444 million, or $1.27 per diluted share, compared to $266 million, or $0.75 per diluted share, in Q1 2017, driven by lower restructuring charges, favorable mark-to-market adjustments, favorable currency translations, a lower effective tax rate, and higher underlying business deliveries.
Kellogg's non-GAAP diluted earnings per share (EPS) jumped 11.1% to $1.19 compared to $1.07 in Q1 2017, attributed to higher business deliveries and a lower effective tax rate. The Company's earnings surpassed Wall Street's estimates of $1.08 per share.
Kellogg North America segment's net sales grew 1.8% to $2.33 billion on a reported basis in Q1 2018, due to the RXBAR acquisition and a favorable currency translation. Excluding these factors, the segment's net sales declined by less than 1% on an organic basis, reflecting the list-price adjustment and rationalization of stock-keeping units (SKU) related to the transition out of DSD in US Snacks. The segment's operating profit soared 49.7% to $399 million in Q1 2018.
During Q1 2018, Kellogg Europe segment recorded a growth in net sales of 14.4% to $587 million on a reported basis. The reported growth was additionally aided by a favorable currency translation while currency-neutral growth was driven by growth in snacks, with Pringles growing at a double-digit rate. The segment's operating profit increased 11.8% to $74 million on a reported basis, owing mainly to a favorable currency translation.
For Q1 2018, Kellogg Latin America segment posted net sales of $232 million, reflecting a growth of 5.3% on a reported basis, aided by a favorable currency translation and a return to growth on a currency-neutral basis. This currency-neutral net sales growth was led by a continued growth in Mexico, which grew sales and share in both cereal and Pringles, and by the Mercosur sub-region, where growth was driven by cereal, Pringles, and Parati cookies and crackers. The segment's operating profit fell 33.0% to $22 million on a reported basis.
Kellogg Asia/Pacific segment's net sales increased strongly by 11.0% to $252 million in Q1 2017, with a favorable currency translation adding to an acceleration in currency-neutral growth. This currency-neutral growth was driven by emerging-markets cereal and continued expansion of Pringles. The segment recorded a strong increase in operating profit of 25.6% to $27 million, related to lower restructuring charges and a favorable currency translation.
For the full fiscal year 2018, Kellogg is forecasting net sales growth of 5% to 7% overall on a currency-neutral basis. The Company is expecting earnings to be in the band of 9% to 11% on a currency-neutral basis.
Stock Performance Snapshot
June 05, 2018 - At Tuesday's closing bell, Kellogg's stock dropped 2.09%, ending the trading session at $63.27.
Volume traded for the day: 3.23 million shares, which was above the 3-month average volume of 2.91 million shares.
Stock performance in the last month – up 5.80%
After yesterday's close, Kellogg's market cap was at $22.14 billion.
Price to Earnings (P/E) ratio was at 15.71.
The stock has a dividend yield of 3.41%.
The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry.
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