Categories AlphaGraphs, Consumer, Earnings

Kellogg (K) Q1 profit jumps 23%, beats estimates

Kellogg (NYSE: K) reported a 3% decline in net sales for the first quarter of 2020 due to the impact of a recent divestiture. However, the results exceeded analysts’ expectations.

The absence of results in the quarter from the late July 2019 divestiture of the company’s cookies, fruit snacks, pie crusts, and ice cream cones businesses pulled down net sales by over 9% while adverse currency translation negatively impacted sales by nearly 2%.

The bottom line jumped by 23% owing primarily to favorable swing in mark-to-market adjustments and lower business and portfolio realignment charges. On an adjusted basis, earnings per share declined by 2% due to the absence of results from the divested businesses as well as adverse currency translation.

Kellogg (K) Q1 2020 earnings review

Kellogg affirmed its full-year financial guidance, with sales and profit delivery shifting toward the first half of the year. Organic net sales are expected to grow 1-2% from last year while adjusted earnings per share, on a currency-neutral basis, are anticipated to fall by 3-4% as the absence of results from divested businesses more than offsets growth in the base business.

Past Performance

Kellogg Q4 2019 Earnings Results

Kellogg Q3 2019 Earnings Performance

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top