Stock Monitor: B&G Foods Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 12, 2018 / Active-Investors.com has just released a free earnings report on Kellogg Co. (NYSE: K). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=K. Kellogg reported its financial results for the quarter ended and full year ended December 30, 2017, on February 08, 2018. The Company's fourth quarter performance signifies a good finish to an important year wherein it exceeded analysts' estimates for revenue. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for B&G Foods, Inc. (NYSE: BGS), which also belongs to the Consumer Goods sector as the Company Kellogg. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Kellogg most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=K
Earnings Highlights and Summary
Kellogg's total revenues for the fourth quarter of 2017 (Q4 FY17) reached $3.21 billion, an increase of 3.62% from $3.1 billion in Q4 FY16, mainly driven by acquisitions of RXBAR (October 2017) and Parati (December 2016), and favorable currency translation. Comparable net sales increased 0.5% to $3.11 billion y-o-y in Q4 FY17. The currency-neutral comparable net sales for the quarter under review were $3.04 billion. The reported revenue number surpassed analysts' consensus estimates of $3.11 billion.
Kellogg's cost of goods sold decreased 10.99% to $1.89 billion y-o-y and its selling, general, and administrative (SG&A) expenses declined 25.74% to $652 million y-o-y in Q4 FY17. The Company's operating income advanced 582.65% to $669 million in the reported quarter from $98 million in the year ago same quarter.
Net income attributable to Kellogg was $428 million for Q4 FY17 compared to net loss attributable to Kellogg of $53 million in Q4 FY16. Diluted earnings per share also rose to $1.23 in Q4 FY17 compared to diluted loss per share of $0.15 in Q4 FY16. The reported numbers included lower restructuring charges and favorable mark-to-market impacts year-on-year as well as costs associated Project K restructuring program. The Company's comparable and currency-neutral DEPS for the quarter under review was $0.96, 5.49% higher than $0.91 in the year ago comparable quarter. The reported comparable DEPS number was in-line with analysts' consensus estimates.
For the year ending December 30, 2017, Kellogg Company's total revenues were $12.92 billion, a decline of 0.70% from $13.01 billion in FY16. Net income attributable to Kellogg for the reported year was $1.27 billion, up 82.85% from $694 million in the previous year. The Company's diluted EPS also rose to $3.62 in FY17 from $1.96 in FY16, reflecting an increase of 84.69%. For full year 2017, comparable DEPS, excluding special items, was $4.04, an increase of 8.60% from $3.72 in 2016.
Kellogg's Segment Details
The North America segment reported revenues fell 1.74% to $2.1 billion in Q4 2017 from $2.13 billion in Q4 FY16, due to list-price adjustment and impacts related to the transition out of DSD in US Snacks. This segment reported operating profit of $374 million in Q4 2017, an increase of 9.68% from $341 million in Q4 FY16.
For Q4 FY17, the Europe segment reported revenues were $614 million, 10.43% higher than $556 million in Q4 FY16. Revenue growth was led by favorable currency translation and gains in snacks as well as cereal. This segment generated reported operating profit of $65 million in the quarter under review compared to an operating loss of $11 million in the year ago corresponding quarter.
The Latin American segment's reported revenue was $259 million for Q4 FY17, an increase of 38.50% from $187 million in Q4 FY16, mainly due to the December 2016 acquisition of Parati in Brazil. This segment's operating profit for the reported quarter was $26 million, 85.71% higher than $14 million in the previous year's same quarter.
For the Asia/Pacific segment reported revenues advanced 8.48% to $243 million in Q4 FY17 from $224 million in Q4 FY16 led by growth in both cereals and snacks. In the reported quarter, this segment's operating profit remained flat at $20 million from previous year's same quarter.
Cash Matters
Kellogg had cash and cash equivalents of $281 million as on December 30, 2017, almost at pat with the $280 million as on December 31, 2016. The Company's total long-term debt as on December 30, 201,7 was $7.84 billion compared to $6.7 billion as on December 31, 2016.
For the twelve months ending December 30, 2017, Kellogg's net cash flow from operating activities was $1.65 billion compared to $1.63 billion for the same period in 2016. The Company spent $516 million in stock repurchases in FY17, 21.13% up from $426 million in FY16. Kellogg distributed dividends of $736 million in FY17 compared to $716 million in FY16.
Outlook
Kellogg shared its financial guidance for fiscal 2018. The Company expects its net sales to remain flat, on a currency-neutral basis. Kellogg estimates its operating profit to increase by 4%-6% and adjusted EPS to increase by 9%-11%, on a currency neutral basis. The Company projects cash from operating activities to increase to $1.7 billion-1.8 billion in 2018, driven by higher net income, sustained working-capital improvement, and benefits from US Tax Reform.
Kellogg's Board of Directors declared a dividend of $0.54 per share on the common stock of the Company, payable on March 15, 2018, to shareowners of record at the close of business on March 05, 2018.
Stock Performance Snapshot
March 09, 2018 - At Friday's closing bell, Kellogg's stock was slightly up 0.88%, ending the trading session at $70.25.
Volume traded for the day: 2.91 million shares.
Stock performance in the last month - up 9.41%; previous three-month period - up 3.11%; past six-month period - up 3.69%; and year-to-date - up 3.34%
After last Friday's close, Kellogg's market cap was at $24.45 billion.
Price to Earnings (P/E) ratio was at 19.32.
The stock has a dividend yield of 3.07%.
The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry. This sector was up 0.7% at the end of the session.
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