Back to top

Image: Shutterstock

Kellogg (K) Queued Up for Q3 Earnings: Things to Keep in Mind

Read MoreHide Full Article

Kellogg Company (K - Free Report) is likely to register growth in the top and the bottom line when it reports third-quarter 2021 numbers on Nov 4. The Zacks Consensus Estimate for revenues currently stands at $3,525 million, suggesting an improvement of 2.8% from the prior-year quarter’s reported figure.

Although the Zacks Consensus Estimate for quarterly earnings has moved down by a penny in the past seven days to 94 cents per share, it suggests growth of 3.3% from the year-ago quarter’s reported figure. The manufacturer and marketer of ready-to-eat cereal and convenience foods has a trailing four-quarter earnings surprise of 6.6%, on average. In the last reported quarter, Kellogg posted an earnings surprise of 10.7%.

Kellogg Company Price and EPS Surprise

Kellogg Company Price and EPS Surprise

Kellogg Company price-eps-surprise | Kellogg Company Quote

Things To Note

Kellogg has been benefiting from its focus on the Deploy for Growth strategy, strength in emerging markets and its portfolio of robust brands. The company’s strategic buyouts have also been supporting performance. These upsides along with a revival in the away-from-home channel are aiding growth. Cumulatively, these factors are likely to have favorably impacted Kellogg’s performance in the third quarter of 2021.

Though Kellogg is benefiting from a pick up in away-from-home demand, at-home demand growth rate has been decelerating as consumer mobility is returning. On its last earnings call, management highlighted that it expects continued softness in at-home demand in the quarter under review. Apart from this, management highlighted that it expects to witness industry-wide supply-chain woes and elevated cost inflation in the second half of the year. Consequently, these headwinds are likely to have negatively impacted the company’s performance in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Kellogg this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kellogg carries a Zacks Rank #3 and an Earnings ESP of -0.40%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat.

Coty Inc. (COTY - Free Report) currently has an Earnings ESP of +50.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +19.13% and a Zacks Rank of 3.

Hormel Foods Corporation (HRL - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank of 3.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hormel Foods Corporation (HRL) - free report >>

Tyson Foods, Inc. (TSN) - free report >>

Kellanova (K) - free report >>

Coty (COTY) - free report >>

Published in