Kellogg beats by $0.01, misses on revs
- Reports Q3 (Sep) earnings of $0.85 per share, $0.01 better than the Capital IQ Consensus of $0.84; revenues fell 8.5% year/year to $3.33 bln vs the $3.43 bln Capital IQ Consensus, due to the effect of currency translation.
- Currency-neutral comparable net sales increased by 1.0% in the quarter as the result of growth in Latin America, Asia, Canada, and the U.S. Specialty Channels business.
- Quarterly reported operating profit was $334 million, a decline of 8.7%. Reported results were affected by up-front costs associated with Project K and currency translation.
- 2015 guidance: Reaffirmed previous guidance for currency-neutral comparable net sales, operating profit, and earnings per share in 2015; the company raised guidance for full-year cash flow. Currency-neutral comparable net sales are expected to remain approximately unchanged year-over-year. Kellogg expects full-year 2015 currency-neutral comparable operating profit to decrease at a rate between 2-4%.
- 2016 guidance: Kellogg continues to expect that it will achieve its long-term target for currency-neutral comparable net sales of between 1-3%, and its long-term target for operating profit growth of between 4% and 6%.