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Kellogg Second Quarter Earnings Preview
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Kellogg (NYSE:K) will release its second quarter results on Thursday, August 2, 2012. Analysts are expecting earnings per share of 84 cents after the company booked a profit of only 94 cents a share a year earlier.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: Analysts are anticipating that Kellogg will report earnings of 84 cents per share, down 10.6% from a year ago, when the company reported earnings of 94 cents per share.
While down from 86 cents three months ago, the consensus estimate has remained unchanged over the past 30 days. Analysts are projecting earnings of $3.36 per share for the fiscal year.
Kellogg is expected to beat last year's reported revenue of $3.39 billion and come in at $3.39 billion for the quarter. Revenue of $14 billion is expected for the fiscal year.
Company Performance: Kellogg reported a decline in revenue in the first quarter, ending a three-quarter growth streak. It fell 1.3% in the first quarter after rising 5.4%in the fourth quarter of the last fiscal year, 4.9% in the third quarter of the last fiscal year and 10.6% in the second quarter of the last fiscal year.
The company's earnings have been rising for the last eight quarters, and for the last four, net income has increased year-over-year by an average of 5%.
K's P/E ratio of 13.9 is under the industry average of 31.27. A low P/E ratio may indicate that the market expects relatively slower earnings growth. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Understanding The P/E Ratio
The stock price has fallen 5.6% since May 1, 2012, from $50 to $47.19. The stock saw one of its worst stretches when its price fell $2.26 per share between May 29, 2012 and June 1, 2012.
The Competition: Kellogg, with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods, including cookies, crackers, and toaster pastries. Analysts generally consider Kellogg a hold, with 15 of 19 analysts rating it as such. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the food processing industry is General Mills (GIS). Analysts are less optimistic about Kellogg than about General Mills. Twelve out of 17 analysts rate the latter a buy compared to three of 19 for the former.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: Analysts are anticipating that Kellogg will report earnings of 84 cents per share, down 10.6% from a year ago, when the company reported earnings of 94 cents per share.
While down from 86 cents three months ago, the consensus estimate has remained unchanged over the past 30 days. Analysts are projecting earnings of $3.36 per share for the fiscal year.
Kellogg is expected to beat last year's reported revenue of $3.39 billion and come in at $3.39 billion for the quarter. Revenue of $14 billion is expected for the fiscal year.
Company Performance: Kellogg reported a decline in revenue in the first quarter, ending a three-quarter growth streak. It fell 1.3% in the first quarter after rising 5.4%in the fourth quarter of the last fiscal year, 4.9% in the third quarter of the last fiscal year and 10.6% in the second quarter of the last fiscal year.
K's P/E ratio of 13.9 is under the industry average of 31.27. A low P/E ratio may indicate that the market expects relatively slower earnings growth. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Understanding The P/E Ratio
The stock price has fallen 5.6% since May 1, 2012, from $50 to $47.19. The stock saw one of its worst stretches when its price fell $2.26 per share between May 29, 2012 and June 1, 2012.
The Competition: Kellogg, with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods, including cookies, crackers, and toaster pastries. Analysts generally consider Kellogg a hold, with 15 of 19 analysts rating it as such. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the food processing industry is General Mills (GIS). Analysts are less optimistic about Kellogg than about General Mills. Twelve out of 17 analysts rate the latter a buy compared to three of 19 for the former.
by
Investopedia Staff
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