Earnings Preview: Kellogg Co.

Kellogg Co. (K) is expected to report Q2 earnings before market open Thursday, July 31, with a conference call scheduled for 9:30 a.m. ET.

Guidance

Analysts are looking for a profit of 81c on revenue of $3.27B. The consensus is 78c to 83c for EPS, and revenue of $3.19B to $3.34B, according to First Call. When Kellogg reported better-than-expected Q1 results on April 30, it gave tepid FY08 EPS guidance of $2.92 to $2.97 vs. a consensus at the time of $2.99. Interestingly, since then, analysts have raised FY08 expectations of the company, and now see a consensus FY08 EPS of $3.00.

Analyst Views

UBS wrote in a research note that Kellogg was able to maintain its share in the cereal category over a three-month period that ended two weeks after the end of the quarter, which is an improvement, as the company had lost share over the several months prior to that.