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Factors to Note as Kellogg (K) Queues Up for Q1 Earnings
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Kellogg Company (K - Free Report) is likely to witness a year-over-year decline in its top and bottom lines when it reports first-quarter 2022 earnings on May 5. The Zacks Consensus Estimate for revenues is pegged at $3,582 million, suggesting a fall of 0.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at 91 cents per share. This indicates a decrease of 18% from the figure reported in the prior-year period. Kellogg has a trailing four-quarter earnings surprise of 11.8%, on average. This renowned food company delivered an earnings surprise of around 5.1% in the last reported quarter.
Kellogg is encountering the adverse impact of labor strikes across four U.S. cereal plants. On its last earnings call, management highlighted that its team was back at work. However, the strike affected the company’s near-term finances. The strike adversely impacted sales and profit in the fourth quarter of 2021 and it will have carry-over cost impacts in the first quarter of 2022. Also, on its last earnings call, management projected cost inflation to reach a double-digit rate, with the first-half inflation higher than the second-half inflation in 2022. It anticipates witnessing persistent supply-chain bottlenecks and shortages at least through the first half of 2022. These factors raise concerns for the quarter to be reported.
On the positive side, K has been gaining on its brand strength due to innovation and solid past buyouts. The company has been focused on investing in brand-building efforts. In this respect, it invests in digital media, consumer promotions and traditional advertising. The company’s EMEA region remains solid, with a multi-year track record of organic net sales growth. In 2021, Pringles delivered an impressive consumption performance despite pandemic-inflicted supply disruptions. The continuation of these upsides may have aided results in the quarter under review.
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 -1.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Hostess Brands has an Earnings ESP of +3.99% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports first-quarter 2022 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hostess Brands’ bottom line stands at 23 cents per share, which suggests a rise of 15% from the year-ago period’s reported figure. TWNK has a trailing four-quarter earnings surprise of roughly 6%, on average.
Celsius Holdings (CELH - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #3. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Celsius Holdings’ revenues is pegged at $117.6 million, indicating growth of 135.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings is pegged at 3 cents per share, suggesting a rise of 200% from the year-ago quarter’s reported figure. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for Hormel Foods’ revenues is pegged at nearly $3 billion, indicating an increase of 15.1% from the year-ago quarter.
The Zacks Consensus Estimate for Hormel Foods’ quarterly earnings per share of 46 cents suggests a rise of 9.5% from the year-ago quarter’s reported figure. HRL has a trailing four-quarter earnings surprise of 1.7%, on average.
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Factors to Note as Kellogg (K) Queues Up for Q1 Earnings
Kellogg Company (K - Free Report) is likely to witness a year-over-year decline in its top and bottom lines when it reports first-quarter 2022 earnings on May 5. The Zacks Consensus Estimate for revenues is pegged at $3,582 million, suggesting a fall of 0.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at 91 cents per share. This indicates a decrease of 18% from the figure reported in the prior-year period. Kellogg has a trailing four-quarter earnings surprise of 11.8%, on average. This renowned food company delivered an earnings surprise of around 5.1% 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 the adverse impact of labor strikes across four U.S. cereal plants. On its last earnings call, management highlighted that its team was back at work. However, the strike affected the company’s near-term finances. The strike adversely impacted sales and profit in the fourth quarter of 2021 and it will have carry-over cost impacts in the first quarter of 2022. Also, on its last earnings call, management projected cost inflation to reach a double-digit rate, with the first-half inflation higher than the second-half inflation in 2022. It anticipates witnessing persistent supply-chain bottlenecks and shortages at least through the first half of 2022. These factors raise concerns for the quarter to be reported.
On the positive side, K has been gaining on its brand strength due to innovation and solid past buyouts. The company has been focused on investing in brand-building efforts. In this respect, it invests in digital media, consumer promotions and traditional advertising. The company’s EMEA region remains solid, with a multi-year track record of organic net sales growth. In 2021, Pringles delivered an impressive consumption performance despite pandemic-inflicted supply disruptions. The continuation of these upsides may have aided results in the quarter under review.
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 -1.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Hostess Brands has an Earnings ESP of +3.99% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports first-quarter 2022 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hostess Brands’ bottom line stands at 23 cents per share, which suggests a rise of 15% from the year-ago period’s reported figure. TWNK has a trailing four-quarter earnings surprise of roughly 6%, on average.
Celsius Holdings (CELH - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #3. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Celsius Holdings’ revenues is pegged at $117.6 million, indicating growth of 135.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings is pegged at 3 cents per share, suggesting a rise of 200% from the year-ago quarter’s reported figure. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for Hormel Foods’ revenues is pegged at nearly $3 billion, indicating an increase of 15.1% from the year-ago quarter.
The Zacks Consensus Estimate for Hormel Foods’ quarterly earnings per share of 46 cents suggests a rise of 9.5% from the year-ago quarter’s reported figure. HRL has a trailing four-quarter earnings surprise of 1.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.