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The Zacks Consensus Estimate for revenues is pegged at $4,047 million, suggesting 4.7% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at $1.11 per share over the past 30 days. The projection indicates a decrease of 5.9% from the figure reported in the year-ago period quarter. Kellogg has a trailing four-quarter earnings surprise of 9.6%, on average.
Factors to Consider
Kellogg has been benefiting from the strength of its brands due to a focus on innovation and lucrative buyouts. The company has been focused on investing in brand-building efforts. In this respect, it invests in digital media, consumer promotions and advertising.
Revenue growth management actions, momentum in snacks and continued recovery in the North America cereal business have been working well for Kellogg. These upsides encouraged management to raise the organic sales view for 2023 when it reported first-quarter results. This also bodes well for the quarter under review. For the second quarter, we expect organic sales growth of 5.1%.
However, Kellogg has been seeing the adverse impacts of input cost inflation. Also, high SG&A costs have been a hurdle. In the first quarter of 2023, Kellogg’s SG&A expenses increased to $770 million from $642 million reported in the year-ago period. As the company has resumed brand-building investments, SG&A expenses are likely to remain elevated.
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 chances of an earnings beat, which is the case here.
Kellogg has an Earnings ESP of +1.92% and a Zacks Rank #3. 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 three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +50.64% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $278.9 million, calling for growth of 81.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at 31 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
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Is a Beat in Store for Kellogg (K) in Q2 Earnings Release?
Kellogg Company (K - Free Report) is likely to register top-line growth when it reports second-quarter 2023 earnings on Aug 3.
The Zacks Consensus Estimate for revenues is pegged at $4,047 million, suggesting 4.7% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at $1.11 per share over the past 30 days. The projection indicates a decrease of 5.9% from the figure reported in the year-ago period quarter. Kellogg has a trailing four-quarter earnings surprise of 9.6%, on average.
Factors to Consider
Kellogg has been benefiting from the strength of its brands due to a focus on innovation and lucrative buyouts. The company has been focused on investing in brand-building efforts. In this respect, it invests in digital media, consumer promotions and advertising.
Kellogg Company Price, Consensus and EPS Surprise
Kellogg Company price-consensus-eps-surprise-chart | Kellogg Company Quote
Revenue growth management actions, momentum in snacks and continued recovery in the North America cereal business have been working well for Kellogg. These upsides encouraged management to raise the organic sales view for 2023 when it reported first-quarter results. This also bodes well for the quarter under review. For the second quarter, we expect organic sales growth of 5.1%.
However, Kellogg has been seeing the adverse impacts of input cost inflation. Also, high SG&A costs have been a hurdle. In the first quarter of 2023, Kellogg’s SG&A expenses increased to $770 million from $642 million reported in the year-ago period. As the company has resumed brand-building investments, SG&A expenses are likely to remain elevated.
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 chances of an earnings beat, which is the case here.
Kellogg has an Earnings ESP of +1.92% and a Zacks Rank #3. 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 three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +50.64% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $278.9 million, calling for growth of 81.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at 31 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.