Kellogg (K) has a market cap of $28.9 billion. It fell by 5.4% to close at $82.26 per share on July 20, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.0%, 7.0%, and 15.4%, respectively, on the same day.
K is trading 1.3% above its 20-day moving average, 5.7% above its 50-day moving average, and 12.5% above its 200-day moving average.
Related ETFs and peers
The PowerShares High Yield Equity Dividend Achievers ETF (PEY) invests 1.7% of its holdings in Kellogg. The ETF aims to track a yield-weighted index of US companies that have increased their annual dividends for at least ten consecutive years. The YTD price movement of PEY was 21.4% on July 20, 2016.
The market caps of Kellogg’s competitors are as follows:
Latest news on Kellogg
Kellogg fell by more than 5.4% on July 20, 2016, after rumors of the deal with Kraft Heinz faded. After speculation last week about the possible deal, Kellogg’s share price rose.
TheStreet Ratings rated the stock a “buy” with a score of B+.
Performance in fiscal 1Q16
Kellogg reported fiscal 1Q16 net sales of $3.4 billion. That was a decline of 4.5% compared to net sales of $3.6 billion in fiscal 1Q15. Sales fell in the following segments in fiscal 1Q16:
- U.S. Morning Foods: fell 1.2%
- U.S. Snacks: fell 2.6%
- North America Other: fell 4.4%
- Europe: fell 1.5%
- Latin America: fell 34.9%
- Asia Pacific: fell 6.1%
Sales from the U.S. Specialty segment rose 4.2% in fiscal 1Q16 compared to fiscal 1Q15. The company’s cost of goods sold as a percentage of net sales fell by 3.1%. Its operating profit rose by 14.1% in fiscal 1Q16 compared to fiscal 1Q15.
Its net income and EPS (earnings per share) fell to $1.8 billion and $0.49, respectively, in fiscal 1Q16. That compares to $2.3 billion and $0.64, respectively, in fiscal 1Q15.
Kellogg’s cash and cash equivalents rose by 23.5%, and its inventories fell by 4.2% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio and long-term debt-to-equity ratio rose to 0.62x and 3.1x, respectively, in fiscal 1Q16, compared to 0.56x and 2.5x, respectively, in fiscal 4Q15.
Kellogg made the following projections for fiscal 2016:
- It expects currency-neutral comparable EPS of $4–$4.07 per share. This projection includes the impact of currency translation of $3.64–$3.71 per share.
- The company expects currency-neutral comparable operating profit growth of 11%–13% due to the timing of price actions in the Venezuela business.
- It expects currency-neutral comparable net sales growth of 4%–6%. This projection excludes the 0%–2% impact of the Venezuela business.
- The company expects its cash flow to be ~$1.1 billion.
- It expects capital expenditures to be 4%–5% of sales. This projection includes the impact of the cash required by Project K and an increase in capital spending of ~1% of sales to support the Pringles business.
Next, we’ll take a look at Mondelez International.