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Kellogg (K) Readies for Q2 Earnings: What's in the Cards?
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Kellogg Company (K - Free Report) is likely to register top-line growth when it reports second-quarter 2022 earnings on Aug 4. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,647 million, suggesting a rise of 2.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $1.05 per share, which indicates a 7.9% decline from the figure reported in the prior-year quarter.
We expect revenues to be up 3% year over year to $3,662.1 million and the bottom line to decline 9.9% to $1.03 per share.
This snacks and convenience foods company has a trailing four-quarter earnings surprise of 12.8%, on average. K delivered an earnings surprise of 20.9% in the last reported quarter.
Kellogg has been gaining from strength in the EMEA. Growth in the snacks, cereal and noodles categories has been aiding sales in the region. Further, a focus on augmenting the portfolio through innovation and prudent buyouts bodes well. Markedly, the company is benefiting from its robust snacks business, especially Pringles. These upsides and revenue growth management efforts like the price/mix bode well for the quarter under review.
However, economy-wide constraints and shortages affected the gross margin in the last reported quarter and are likely to persist, at least through the first half of the year. Apart from this, Kellogg’s first-quarter performance was somewhat hurt by the inadequate finished goods inventory in North America cereal stemming from a fire outbreak and labor strike in the second half of 2021. On its last earnings call, the company said that it is progressing toward reviving sales and inventory in its North America cereal business. However, any impact of the fiasco is likely to affect the results of the North American segment.
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 carries a Zacks Rank #3 and has an Earnings ESP of +2.01%. 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 you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past seven days to $1.47 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 5% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +5.62% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $859.6 million, which suggests a rise of 10.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for GO’s quarterly earnings has remained unchanged in the past 30 days at 24 cents per share. The consensus mark indicates a 4.4% jump from the year-ago quarter’s reported number. Grocery Outlet delivered an earnings beat of 4.8%, on average, in the trailing four quarters.
Ollie's Bargain Outlet (OLLI - Free Report) currently has an Earnings ESP of +6.06% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for OLLI’s quarterly revenues is pegged at $457.5 million, which suggests a jump of 10% from the figure reported in the prior-year quarter.
The consensus mark for Ollie's Bargain’s quarterly earnings has remained unchanged at 33 cents per share in the past 30 days. The consensus estimate for OLLI’s quarterly earnings suggests a decline of 36.5% from the year-ago quarter’s reported figure. Ollie's Bargain delivered a negative earnings surprise of 17.1%, on average, in the trailing four quarters.
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Kellogg (K) Readies for Q2 Earnings: What's in the Cards?
Kellogg Company (K - Free Report) is likely to register top-line growth when it reports second-quarter 2022 earnings on Aug 4. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,647 million, suggesting a rise of 2.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $1.05 per share, which indicates a 7.9% decline from the figure reported in the prior-year quarter.
We expect revenues to be up 3% year over year to $3,662.1 million and the bottom line to decline 9.9% to $1.03 per share.
This snacks and convenience foods company has a trailing four-quarter earnings surprise of 12.8%, on average. K delivered an earnings surprise of 20.9% in the last reported quarter.
Kellogg Company Price, Consensus and EPS Surprise
Kellogg Company price-consensus-eps-surprise-chart | Kellogg Company Quote
Factors to Note
Kellogg has been gaining from strength in the EMEA. Growth in the snacks, cereal and noodles categories has been aiding sales in the region. Further, a focus on augmenting the portfolio through innovation and prudent buyouts bodes well. Markedly, the company is benefiting from its robust snacks business, especially Pringles. These upsides and revenue growth management efforts like the price/mix bode well for the quarter under review.
However, economy-wide constraints and shortages affected the gross margin in the last reported quarter and are likely to persist, at least through the first half of the year. Apart from this, Kellogg’s first-quarter performance was somewhat hurt by the inadequate finished goods inventory in North America cereal stemming from a fire outbreak and labor strike in the second half of 2021. On its last earnings call, the company said that it is progressing toward reviving sales and inventory in its North America cereal business. However, any impact of the fiasco is likely to affect the results of the North American segment.
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 carries a Zacks Rank #3 and has an Earnings ESP of +2.01%. 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 you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past seven days to $1.47 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 5% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +5.62% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $859.6 million, which suggests a rise of 10.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for GO’s quarterly earnings has remained unchanged in the past 30 days at 24 cents per share. The consensus mark indicates a 4.4% jump from the year-ago quarter’s reported number. Grocery Outlet delivered an earnings beat of 4.8%, on average, in the trailing four quarters.
Ollie's Bargain Outlet (OLLI - Free Report) currently has an Earnings ESP of +6.06% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for OLLI’s quarterly revenues is pegged at $457.5 million, which suggests a jump of 10% from the figure reported in the prior-year quarter.
The consensus mark for Ollie's Bargain’s quarterly earnings has remained unchanged at 33 cents per share in the past 30 days. The consensus estimate for OLLI’s quarterly earnings suggests a decline of 36.5% from the year-ago quarter’s reported figure. Ollie's Bargain delivered a negative earnings surprise of 17.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.