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Kellogg Company (K) is scheduled to report its Q2 2012 results on August 2, 2012, before market opens. The Street expects EPS and revenue of $0.84 and $3.39B, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from K and the news from its closest competitors.

Kellogg Company Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter, it reported $1.00 EPS, just beating analyst estimates of $0.99.

Kellogg Company EPS Historical Results vs Estimates

The consensus EPS estimate is $0.84 based on 11 analysts' estimates, down from $0.94 a year ago. Revenue estimates are $3.39B, same as a year ago. The median target price by analysts for the stock is $52.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On February 22, 2012, Deutsche Bank upgraded the company from Hold to Buy.

Latest News

  • On July 20, 2012, Kellogg Company announced that its Board of Directors declared a dividend of $0.44 per share on the common stock of the Company, payable on September 17, 2012, to shareowners of record at the close of business on September 4, 2012.
  • On May 31, 2012, Procter & Gamble Co announced that it has completed the sale of its Pringles business to Kellogg Company in a $2.695 billion all-cash transaction effective June 1, 2012.
  • On April 23, 2012, Kellogg Company lower fiscal 2012 earnings guidance and expects reported earnings, which include the expected impact of the acquisition of Pringles, to be in a range of $3.18 to $3.30 per share.
  • On February 17, 2012, Kellogg Company announced that its Board of Directors declared a dividend of $0.43 per share on the common stock of the Company, payable on March 15, 2012, to shareowners of record at the close of business on March 1, 2012.
  • On February 15, 2012, Kellogg Company announced that it has entered into an agreement to acquire Procter & Gamble's Pringles business for $2.695 billion. The companies expect to complete the transaction in the summer of 2012, pending necessary regulatory approvals.
  • On February 2, 2012, Kellogg Company reaffirmed its fiscal 2012 guidance for internal net sales growth, which is expected to increase by 4% to 5%, greater than long-term annual targets and reflecting both improvement in price/mix and a stronger innovation pipeline.

Competitors

Campbell Soup (CPB), General Mills (GIS), H. J. Heinz (HNZ), Kraft Foods (KFT), and Unilever (UN) are considered major competitors for Kellogg and the table below provides the key metrics for these companies and the industry.

Kellogg Company key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.

K Chart

K data by YCharts

Competitors' Latest Development

  • On July 18, 2012, Kraft Foods Inc and SodaStream International, Ltd. announced the expansion of their strategic partnership for the manufacturing, marketing, distribution and sale of Kraft Foods beverage brands for use with the SodaStream soda making system.
  • On July 10, 2012, General Mills, Inc. announced that for fiscal 2013, the company still targeting net sales to grow at a mid single-digit rate and expects adjusted diluted earnings per share to grow approximately $2.65, including headwinds from pension expense, tax, and acquisition-related costs for Yoki.
  • On July 9, 2012, Campbell Soup Company announced that it has entered into an agreement to acquire Bolthouse Farms from a fund managed by Madison Dearborn Partners, LLC, a private equity firm, for $1.55 billion in cash.
  • On June 27, 2012, General Mills, Inc. announced that for fiscal 2013, it expects net sales to grow at a mid-single-digit rate. The fiscal 2013 guidance provided above does not include any contribution from the anticipated acquisition of Yoki Alimentos, S.A., a Brazilian food company.
  • On June 26, 2012, General Mills, Inc. announced that its Board of Directors has approved an 8% dividend increase for General Mills common stock. The new quarterly dividend of $0.33 per share is payable August.
  • On June 19, 2012, Campbell Soup Company reiterated fiscal 2012 guidance and expects net sales would be near the bottom end of a 0% to 2% increase; operating profit would be near the bottom end of a negative 7% to negative 9% decrease; and that adjusted net earnings per share would be near the top end of the negative 5% to negative 7% range.
  • On June 19, 2012, Dow Jones reported that Unilever NV (Unilever) announced the reorganization of Unilever Belgium, which might affect approximately 50 jobs.
  • On June 11, 2012, Campbell Soup Company announced it has purchased 1300 Admiral Wilson Boulevard in Camden, from Camden Gateway Properties, I, LLC. The 4-acre property includes the vacant Sears building.
  • On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
  • On May 24, 2012, General Mills, Inc. announced that it has signed a definitive agreement to acquire Yoki Alimentos S.A., a privately-held food company headquartered in Sao Bernardo do Campo, Brazil.
  • On May 24, 2012, H.J. Heinz Co announced that it expects organic sales growth of at least 4% and constant currency EPS growth of 5%-8% ($3.52 to $3.62) from continuing operations, excluding special charges in fiscal 2012.
  • On May 24, 2012, H.J. Heinz Co announced that its Board of Directors has approved a 7.3% increase in the annualized common stock dividend. The quarterly common stock dividend will increase from $0.48 to $0.515 per share quarterly for all shareholders of record as of June 24, 2012, payable July 10, 2012.
  • On May 22, 2012, General Mills, Inc. announced a productivity and cost savings plan designed to improve organizational effectiveness and focus on key growth strategies.
  • On May 15, 2012, General Mills, Inc. announced that for fiscal 2012, it expects to deliver adjusted diluted earnings per share (EPS) of $2.53 to $2.55. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $2.54 for fiscal 2012.
  • On May 3, 2012, Kraft Foods Inc announced that it continue to expect fiscal 2012 Organic Net Revenue growth of approximately 5% and Operating EPS growth of at least 9% on a constant currency basis.
  • On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of H J Heinz Co will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker HNZB11.
  • On March 14, 2012, Kraft Foods Inc announced that the Board of Directors has declared a regular quarterly dividend of $0.29 per common share of Class A stock. This dividend is payable on April 16, 2012, to stockholders of record as of March 30, 2012.
  • On February 21, 2012, Kraft Foods, Inc. announced that it expect to deliver top-tier growth in fiscal 2012, in line with long-term targets, while it prepare to successfully launch the North American grocery and global snacks companies later this year.
  • On February 17, 2012, Campbell Soup Company confirmed its previous fiscal 2012 guidance. Campbell expects net sales growth to be between 0% and 2%, a decline in adjusted EBIT of between (9)% and (7)% and a decline in adjusted EPS of between (7)% and (5)%, putting adjusted EPS in the range of $2.35 to $2.42, from fiscal 2011 adjusted base of $2.54. The company reported revenue of $7.719 billion and EBIT of $1.342 billion in fiscal 2011.
  • On February 17, 2012, General Mills, Inc. announced that it estimates that 2012 third-quarter adjusted diluted EPS will total $0.54-$0.56. The company revised its fiscal 2012 adjusted diluted EPS guidance to $2.53-$2.55. The company's guidance had been $2.59-$2.61. Adjusted diluted EPS excludes the effects of mark-to-market valuation of certain commodity positions, and integration costs for the Yoplait international acquisition completed July 1, 2011.
  • On February 17, 2012, H J Heinz Co announced that it is narrowing its fiscal 2012 EPS outlook to a range of $3.32 to $3.34 on a reported basis, excluding the charges for productivity initiatives.
  • On February 13, 2012, Reuters reported that General Mills, Inc. agreed to buy Brazilian food company Yoki for 2 billion reais ($1.16 billion), in a move marking its return to Latin America's consumer market, a local newspaper reported on February 13, 2012.

Technical Overview


The stock has a market capitalization of $16.94B and is currently trading around $47.40 with a 52-week range of $46.33-$55.30. The stock's year-to-date performance has been -4.69%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Kellogg Company