Kellogg (K) Expected to Post Earnings of $0.96 Per Share

Analysts predict that Kellogg (NYSE:K) will report $0.96 earnings per share (EPS) for the current quarter, according to Zacks. Five analysts have made estimates for Kellogg’s earnings. The lowest EPS estimate is $0.94 and the highest is $0.98. Kellogg reported earnings of $0.92 per share in the same quarter last year, which suggests a positive year over year growth rate of 4.3%. The firm is expected to issue its next quarterly earnings report before the market opens on Thursday, February 8th.

According to Zacks, analysts expect that Kellogg will report full-year earnings of $4.03 per share for the current year, with EPS estimates ranging from $3.97 to $4.05. For the next fiscal year, analysts expect that the firm will report earnings of $4.31 per share, with EPS estimates ranging from $4.14 to $4.48. Zacks Investment Research’s earnings per share calculations are an average based on a survey of sell-side research analysts that that provide coverage for Kellogg.

Kellogg (NYSE:K) last posted its quarterly earnings results on Tuesday, October 31st. The company reported $1.05 EPS for the quarter, beating the Zacks’ consensus estimate of $0.94 by $0.11. The business had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.22 billion. Kellogg had a return on equity of 73.92% and a net margin of 6.15%. Kellogg’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.96 earnings per share.

K has been the subject of a number of analyst reports. Morgan Stanley dropped their price target on Kellogg from $70.00 to $66.00 and set an “equal weight” rating for the company in a research note on Friday, October 13th. Royal Bank of Canada reiterated a “hold” rating and issued a $78.00 target price on shares of Kellogg in a research report on Wednesday, October 25th. Credit Suisse Group decreased their target price on Kellogg from $70.00 to $65.00 and set a “neutral” rating on the stock in a research report on Friday, October 20th. Bank of America reiterated an “underperform” rating and issued a $66.00 target price (down previously from $72.00) on shares of Kellogg in a research report on Monday, October 9th. Finally, Piper Jaffray Companies set a $72.00 target price on Kellogg and gave the company a “hold” rating in a research report on Tuesday, October 31st. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus target price of $72.57.

Kellogg (K) opened at $66.62 on Friday. The company has a market capitalization of $22,990.00, a PE ratio of 29.74, a P/E/G ratio of 2.51 and a beta of 0.52. Kellogg has a 52 week low of $58.76 and a 52 week high of $76.69. The company has a debt-to-equity ratio of 3.71, a current ratio of 0.68 and a quick ratio of 0.43.

Kellogg declared that its board has initiated a share buyback plan on Friday, December 15th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

In other news, major shareholder Kellogg W. K. Foundation Trust sold 78,606 shares of the business’s stock in a transaction dated Monday, November 27th. The stock was sold at an average price of $65.14, for a total transaction of $5,120,394.84. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, major shareholder Kellogg W. K. Foundation Trust sold 44,515 shares of the business’s stock in a transaction dated Tuesday, November 21st. The stock was sold at an average price of $65.11, for a total value of $2,898,371.65. Following the sale, the insider now owns 67,887,323 shares in the company, valued at $4,420,143,600.53. The disclosure for this sale can be found here. In the last quarter, insiders sold 349,754 shares of company stock worth $22,304,119. Company insiders own 1.30% of the company’s stock.

Several large investors have recently added to or reduced their stakes in K. Capital Research Global Investors grew its holdings in shares of Kellogg by 54.7% during the second quarter. Capital Research Global Investors now owns 24,031,728 shares of the company’s stock worth $1,669,244,000 after purchasing an additional 8,495,714 shares during the last quarter. Nordea Investment Management AB grew its holdings in shares of Kellogg by 15,410.4% during the third quarter. Nordea Investment Management AB now owns 2,270,254 shares of the company’s stock worth $141,596,000 after purchasing an additional 2,255,617 shares during the last quarter. HS Management Partners LLC bought a new stake in shares of Kellogg during the third quarter worth about $122,431,000. Ameriprise Financial Inc. grew its holdings in shares of Kellogg by 34.2% during the third quarter. Ameriprise Financial Inc. now owns 4,038,523 shares of the company’s stock worth $251,883,000 after purchasing an additional 1,030,264 shares during the last quarter. Finally, Janus Henderson Group PLC grew its holdings in shares of Kellogg by 2,619.1% during the second quarter. Janus Henderson Group PLC now owns 870,911 shares of the company’s stock worth $60,493,000 after purchasing an additional 838,882 shares during the last quarter. Institutional investors own 89.62% of the company’s stock.

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About Kellogg

Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods.

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