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Kellogg's (K) Q3 Earnings Upcoming: Here's All You Should Note
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Kellogg Company (K - Free Report) is likely to register a top-line increase from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Nov 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,768 million, suggesting a rise of around 4% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 96 cents per share. This indicates a decline of 11.9% from the figure reported in the prior-year fiscal quarter.
The renowned food company has a trailing four-quarter earnings surprise of 13.3%, on average. K delivered an earnings surprise of 12.4% in the last reported quarter.
We expect third-quarter net revenues to be up 32% year over year to $3,739.3 million and the bottom line to dip 11.6% to 96 cents a share.
A strong brand portfolio, backed by regular innovation and gains from acquisitions, has been working well for Kellogg.
In the last reported quarter, net sales growth was backed by a favorable price/mix and in-market momentum in snacks, noodles and other and international cereal, along with a faster-than-anticipated rebound across North America cereal. Organic net sales (excluding currency impact) increased by more than 12%.
Considering better-than-anticipated first-half results, underlying momentum and revenue growth management (RGM) actions, the company raised its 2022 view on its second-quarter earnings call.
Organic net sales growth in 2022 is now estimated to be up 7-8%, from the nearly 4% growth expected earlier. The raised view reflects better-than-anticipated growth in the first half of the year, actions related to RGM and impressive in-market momentum, especially in snacks and emerging markets. These aspects bode well for the quarter under review.
However, Kellogg is seeing the adverse impacts of input cost inflation and supply disruptions. It has been battling a drab gross margin for a while, which persisted in the second quarter of 2022.
On its last earnings call, management stated that it expects input cost inflation to remain higher than productivity and RGM offsets. It assumes no moderation in supply-chain bottlenecks and shortages until the fourth quarter of 2022. This raises concerns for the quarter to be reported.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kellogg this time. 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, which is the case here.
Kellogg has a Zacks Rank #3 and an Earnings ESP of +1.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering as our model shows that these also have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of around 11% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.7 billion, indicating a decline of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s bottom line is pegged at 73 cents per share, suggesting a decline of 39.7% from the year-ago quarter’s reported figure. CLX delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
Nu Skin (NUS - Free Report) currently has an Earnings ESP of +3.00% and a Zacks Rank of 3. NUS is expected to register top-and-bottom-line declines when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Nu Skin’s quarterly revenues is pegged at $569.5 million, which suggests a decrease of 11.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Nu Skin’s quarterly earnings has declined by a penny in the past 30 days to 78 cents per share, suggesting a fall of 19.6% from the year-ago quarter’s tally. NUS delivered an earnings beat of 7.8%, on average, in the trailing four quarters.
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Kellogg's (K) Q3 Earnings Upcoming: Here's All You Should Note
Kellogg Company (K - Free Report) is likely to register a top-line increase from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Nov 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,768 million, suggesting a rise of around 4% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 96 cents per share. This indicates a decline of 11.9% from the figure reported in the prior-year fiscal quarter.
The renowned food company has a trailing four-quarter earnings surprise of 13.3%, on average. K delivered an earnings surprise of 12.4% in the last reported quarter.
We expect third-quarter net revenues to be up 32% year over year to $3,739.3 million and the bottom line to dip 11.6% to 96 cents a share.
Kellogg Company Price, Consensus and EPS Surprise
Kellogg Company price-consensus-eps-surprise-chart | Kellogg Company Quote
Factors to Consider
A strong brand portfolio, backed by regular innovation and gains from acquisitions, has been working well for Kellogg.
In the last reported quarter, net sales growth was backed by a favorable price/mix and in-market momentum in snacks, noodles and other and international cereal, along with a faster-than-anticipated rebound across North America cereal. Organic net sales (excluding currency impact) increased by more than 12%.
Considering better-than-anticipated first-half results, underlying momentum and revenue growth management (RGM) actions, the company raised its 2022 view on its second-quarter earnings call.
Organic net sales growth in 2022 is now estimated to be up 7-8%, from the nearly 4% growth expected earlier. The raised view reflects better-than-anticipated growth in the first half of the year, actions related to RGM and impressive in-market momentum, especially in snacks and emerging markets. These aspects bode well for the quarter under review.
However, Kellogg is seeing the adverse impacts of input cost inflation and supply disruptions. It has been battling a drab gross margin for a while, which persisted in the second quarter of 2022.
On its last earnings call, management stated that it expects input cost inflation to remain higher than productivity and RGM offsets. It assumes no moderation in supply-chain bottlenecks and shortages until the fourth quarter of 2022. This raises concerns for the quarter to be reported.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kellogg this time. 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, which is the case here.
Kellogg has a Zacks Rank #3 and an Earnings ESP of +1.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering as our model shows that these also have the right combination of elements to beat earnings this season.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +2.02% and a Zacks Rank #3. HSY is likely to register a top-line improvement when it reports third-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of around 11% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.7 billion, indicating a decline of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s bottom line is pegged at 73 cents per share, suggesting a decline of 39.7% from the year-ago quarter’s reported figure. CLX delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
Nu Skin (NUS - Free Report) currently has an Earnings ESP of +3.00% and a Zacks Rank of 3. NUS is expected to register top-and-bottom-line declines when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Nu Skin’s quarterly revenues is pegged at $569.5 million, which suggests a decrease of 11.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Nu Skin’s quarterly earnings has declined by a penny in the past 30 days to 78 cents per share, suggesting a fall of 19.6% from the year-ago quarter’s tally. NUS delivered an earnings beat of 7.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.