Kellogg Posts Smaller Q4 Loss; Adjusted Net Beats Estimates (K)

Kellogg Posts Smaller Q4 Loss; Adjusted Net Beats Estimates (K)


Food manufacturer Kellogg Company (K) reported a smaller loss for the fourth quarter, as its adjusted results beat analyst estimates on Tuesday.

The Battle Creek, MI based company reported a fourth quarter loss of -$32 million, or -9 cents per share, compared to a loss of -$195 million, or -54 cents per share last year. Excluding special items, the company reported earnings of 67 cents per share, beating analysts estimate of 66 cents per share.

Revenue for the quarter increased to $3.56 billion, from $3.02 billion last year, and beating analysts estimate of $3.44 billion.

Strong sales during the quarter helped offset an accounting charge.

For the full year 2012, the company’s net income came in at $961 million, or $2.67 per share, up from $866 million, or $2.38 per share in 2011. Revenue for the year increased by 8% to $14.2 billion, from $13.2 billion in 2011. Analysts estimated FY2012 earnings to be $3.32 per share with $14.08 billion in revenue.

Looking ahead, the company expects to see FY2013 earnings to see a 5-7% growth, and a 7% growth in revenue. Analysts are looking for EPS of $3.69 and $15.17 billion in revenue.

Kelloggs shares were up $1.15, or 1.98% during Tuesday morning trading. The stock has increased 16% in the past year.

The Bottom Line
Shares of K currently offer a 2.9% dividend yield, based on Tuesday morning’s price of $59.29 and the company’s annualized dividend payout of $1.72 per share.

Kellogg Company (K) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

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