Research Desk Line-up: Ingredion Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Kellogg Co. (NYSE: K), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=K, following the Company's posting of its financial results on August 03, 2017, for the second quarter of the fiscal year 2017. The maker of Frosted Flakes, Pop Tarts, and Eggo waffles reported a y-o-y gain in earnings and also reiterated its currency-neutral comparable net sales, operating profit, and earnings per share (EPS), as well as its cash flow guidance for the fiscal year 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Processed & Packaged Goods industry. Pro-TD has currently selected Ingredion Incorporated (NYSE: INGR) for due-diligence and potential coverage as the Company reported on August 01, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Ingredion when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on K; also brushing on INGR. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
Kellogg's net sales decreased to $3.19 billion compared to net sales of $3.27 billion, principally due to soft consumption trends in the US and reduced merchandising activity in Europe related to pricing actions. The Company's revenue numbers topped analysts' estimates of $3.16 billion.
For Q2 2017, Kellogg's reported operating profit increased about 1% to $453 million and operating profit margin improved as productivity savings more than offset the impact of higher restructuring charges related to the Project K restructuring program, which includes this year's exit from its US Snacks segment's Direct Store Delivery sales and delivery system.
For the three months ended June 30, 2017, Kellogg's reported net income of $282 million, or $0.80 per diluted share, compared to net income of $280 million, or $0.79 per diluted share, in Q2 2016. The Company's earnings per share improved by 1% on a y-o-y basis as higher operating profit and a lower effective tax rate more than offset a higher level of restructuring charges.
For Q2 2017, Kellogg's non-GAAP comparable earnings per share grew 7% to $0.97 on a y-o-y basis, while non-GAAP currency-neutral comparable earnings per share increased by about 8% to $0.98 compared to the year ago corresponding period. The Company's earnings numbers topped Wall Street's expectations of $0.92 per share.
Business Performance
In Q2 2017, Kellogg's North America's net sales came in at $2.15 billion compared to net sales of $2.21 billion in Q2 2016, principally reflecting continued softness in consumption in traditional retail channels. The US Morning Foods segment posted a decline in net sales of 6.6% to $679 million for the reported quarter. The US Snacks segment's net sales totaled $803 million flat on both a reported and a currency-neutral comparable basis. During Q2 2017, The US Specialty Channels segment posted net sales of $276 million, up 1.8% on a y-o-y basis, driven by innovation and expansion in core and emerging channels.
For Q2 2017, Kellogg's Europe's net sales totaled $566 million compared to net sales of $629 million in Q2 2016, mainly due to loss of merchandising activity in the aftermath of since-resolved customer negotiations related to pricing actions on Pringles.
The Company's Latin America basis recorded net sales of $234 million, up compared to net sales of $204 million in the prior year's same quarter, due to the December 2016 acquisition of Parati in Brazil, while currency-neutral comparable net sales declined on a y-o-y basis due to economic softness and trade inventory reductions in Central America and Caribbean.
Kellogg reported an increase in net sales in Asia/Pacific to $238 million, from $228 million in Q2 2016; led by a return to growth in Australia, continued broad-based growth in Asia, and sustained momentum in Pringles across the region.
Outlook for 2017
Kellogg reaffirmed its guidance for currency-neutral comparable net sales, operating profit, and earnings per share, as well as for cash flow. The Company continues to forecast a decline in currency-neutral comparable net sales of approximately 3% in 2017. The Company is estimating currency-neutral comparable operating profit to grow 7% - 9% on a y-o-y basis. Kellogg's currency-neutral comparable operating profit margin is expected to improve by more than a full percentage. The Company forecasts cash from operating activities of approximately $1.6 billion -1.7 billion, which after capital expenditure, translates into cash flow in the range of $1.1 billion -1.2 billion.
Stock Performance
On Monday, August 21, 2017, the stock closed the trading session at $70.20, slightly up 0.36% from its previous closing price of $69.95. A total volume of 1.27 million shares have exchanged hands. Kellogg's stock price advanced 4.43% in the last one month. The stock is trading at a PE ratio of 31.69 and has a dividend yield of 3.08%. The stock currently has a market cap of $24.28 billion.
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SOURCE: Pro-Trader Daily