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Kellogg (K) Lined Up for Q4 Earnings: Key Factors to Note
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Kellogg Company (K - Free Report) is likely to witness a year-over-year decline in the top and the bottom line when it reports fourth-quarter 2021 earnings on Feb 10. The Zacks Consensus Estimate for revenues is pegged at $3,399 million, suggesting a drop of 1.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has decreased by a penny over the past 30 days to 79 cents per share, indicating a decline of 8.1% from the figure reported in the prior-year period. The manufacturer and marketer of ready-to-eat cereal and convenience foods products has a trailing four-quarter earnings surprise of 9.5%, on average. Kellogg delivered an earnings surprise of 14.7% in the last reported quarter.
Kellogg is encountering disruptions related to tight supply of materials, freight and labor as well as associated cost inflation. On its third-quarter earnings call, management said that it expects industry-wide and company-specific supply-chain headwinds as well as elevated cost inflation to prevail. The company stated that it expects the gross margin to remain under pressure in the fourth quarter due to high single-digit inflation. It also expects adjusted operating profit to have declined 1-2% at constant currency in 2021. Management stated that supply and labor-related hurdles could further affect K’s operating profit, earnings per share and cash flow.
Also, management projected continued deceleration in at-home demand for the near term. That said, away-from-home demand has been picking up. Organic sales growth for 2021 is estimated to be up 2-3%. Kellogg has been benefiting from its brand strength, which has been getting a boost from buyouts as well as innovation. The company’s emerging market business has been strong.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 not the case here.
Kellogg currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.95%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Companies Likely to Post a Beat
Coty Inc. (COTY - Free Report) has an Earnings ESP of +37.14% and a Zacks Rank #3. Coty is anticipated to register top-line growth when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for COTY’s quarterly revenues is pegged at $1.6 billion, indicating an improvement of 13.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coty’s bottom line has remained unchanged in the past 30 days at 12 cents per share. However, the consensus estimate for earnings suggests a decline of 29.4% from the year-ago quarter’s reported figure. Coty delivered an earnings beat of 66.4%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Service Corporation International (SCI - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. Service Corporation is anticipated to register growth in the top line but a decline in the bottom line when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at about $1 billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Service Corporation’s bottom line has jumped 11.1% in the past 30 days to $1.00 per share. The consensus estimate suggests a drop of 11.5% from the year-ago quarter’s reported figure. SCI has delivered an earnings beat of 45.6%, on average, in the trailing four quarters.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the bottom line has declined by 4 cents in the past 30 days to 44 cents per share, suggesting growth of 7.3% from the figure reported in the year-ago period.
The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at roughly $2,870 million, suggesting a rise of 16.6% from the figure reported in the prior-year quarter. HRL delivered an earnings surprise of 1.8%, on average, in the trailing four quarters.
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Kellogg (K) Lined Up for Q4 Earnings: Key Factors to Note
Kellogg Company (K - Free Report) is likely to witness a year-over-year decline in the top and the bottom line when it reports fourth-quarter 2021 earnings on Feb 10. The Zacks Consensus Estimate for revenues is pegged at $3,399 million, suggesting a drop of 1.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has decreased by a penny over the past 30 days to 79 cents per share, indicating a decline of 8.1% from the figure reported in the prior-year period. The manufacturer and marketer of ready-to-eat cereal and convenience foods products has a trailing four-quarter earnings surprise of 9.5%, on average. Kellogg delivered an earnings surprise of 14.7% in the last reported quarter.
Kellogg Company Price, Consensus and EPS Surprise
Kellogg Company price-consensus-eps-surprise-chart | Kellogg Company Quote
Key Factors to Consider
Kellogg is encountering disruptions related to tight supply of materials, freight and labor as well as associated cost inflation. On its third-quarter earnings call, management said that it expects industry-wide and company-specific supply-chain headwinds as well as elevated cost inflation to prevail. The company stated that it expects the gross margin to remain under pressure in the fourth quarter due to high single-digit inflation. It also expects adjusted operating profit to have declined 1-2% at constant currency in 2021. Management stated that supply and labor-related hurdles could further affect K’s operating profit, earnings per share and cash flow.
Also, management projected continued deceleration in at-home demand for the near term. That said, away-from-home demand has been picking up. Organic sales growth for 2021 is estimated to be up 2-3%. Kellogg has been benefiting from its brand strength, which has been getting a boost from buyouts as well as innovation. The company’s emerging market business has been strong.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 not the case here.
Kellogg currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.95%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Companies Likely to Post a Beat
Coty Inc. (COTY - Free Report) has an Earnings ESP of +37.14% and a Zacks Rank #3. Coty is anticipated to register top-line growth when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for COTY’s quarterly revenues is pegged at $1.6 billion, indicating an improvement of 13.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coty’s bottom line has remained unchanged in the past 30 days at 12 cents per share. However, the consensus estimate for earnings suggests a decline of 29.4% from the year-ago quarter’s reported figure. Coty delivered an earnings beat of 66.4%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Service Corporation International (SCI - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. Service Corporation is anticipated to register growth in the top line but a decline in the bottom line when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at about $1 billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Service Corporation’s bottom line has jumped 11.1% in the past 30 days to $1.00 per share. The consensus estimate suggests a drop of 11.5% from the year-ago quarter’s reported figure. SCI has delivered an earnings beat of 45.6%, on average, in the trailing four quarters.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the bottom line has declined by 4 cents in the past 30 days to 44 cents per share, suggesting growth of 7.3% from the figure reported in the year-ago period.
The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at roughly $2,870 million, suggesting a rise of 16.6% from the figure reported in the prior-year quarter. HRL delivered an earnings surprise of 1.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.