K - Kellogg tops Q1 expectations hikes full-year forecasts

2023-05-04 09:06:54 ET

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Kellogg Company ( NYSE: K ) shares wavered in premarket trading despite a beat on top and bottom lines for Q1.

The Michigan-based cereal giant notched non-GAAP EPS of $1.10 for the quarter, $0.10 above the consensus expectation. Meanwhile, a 10.4% jump in revenue to $4.05B beat the Street consensus by $100M. Pricing actions were cited as a key driver of revenue growth and margin expansion year over year as the company worked to offset inflationary pressures.

“We continue to grow net sales organically above our long-term targets, and this growth spans across our Regions and our category groups. We also continue to make progress toward recovering our profit margins,” CEO Steve Cahillane commented. “These better-than-expected results and raised full-year outlook indicate a strong attention to business delivery, even as we execute the transformational separation of Kellogg Company into two, more focused companies: The global, snacking-oriented Kellanova, and our North America cereal business, WK Kellogg Co.”

Management now expects net sales growth in a range of 6% to 7%, tightened from a prior range of 5% to 7%. Adjusted operating profit growth guidance was also raised to a range between 8% and 10% from its prior guidance of 7% to 9%. Adjusted earnings per share are expected to decline between 1% and 3% as compared to a prior guide of about a 2% to 4% drop.

Shares of Kellogg Company ( K ) rose 0.7% shortly before Thursday’s market open.

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