NYSE$K

Kellanova · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Kellogg's reported better-than-expected results due to increased demand during the COVID-19 pandemic and the Deploy for Growth strategy.

Kellogg Company reported a decrease in net sales by 3.1%, but organic net sales increased by 8.0%. The company's performance was aided by increased demand due to the COVID-19 pandemic and the Deploy for Growth strategy. They affirmed their full-year financial guidance.

  • Priorities have been ensuring employees' health and safety, supplying food, and aiding communities during the COVID-19 pandemic.
  • The Deploy for Growth strategy continues to drive business momentum.
  • Demand for products increased significantly in March due to consumers stocking up on packaged foods.
  • The company affirmed its full-year financial guidance, with a shift in sales and earnings toward the first half of the year.

Headline financials

Total Revenue

$3.41B

Previous: $3.52B-3.1%
EPS (adj)

$0.99

Previous: $1.01-2.0%
Organic revenue growth

8.0%

Previous: 0.0%
Capital Expenditures

$112M

Previous: $148M-24.3%
Free Cash Flow

$279M

Previous: -$78M+457.7%
Net Income

$350M

Previous: $282M+24.1%
Operating Income

$459M

Previous: $381M+20.5%
Gross Profit

$1.14B

Previous: $1.11B+3.3%
Cash & Equivalents

$1.02B

Previous: $272M+273.5%
Total Assets

$18.2B

Previous: $18.5B-1.2%
Stock-Based Comp

$19M

Previous: $13M+46.2%

Revenue & EPS history

Kellanova · Revenue · Quarterly

$3.41B

Q1 2020-3.1%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Kellanova · $3.41B total across 4 segments · Q1 2020

  • North America
    $2.1B
  • AMEA
    $562M
  • Europe
    $526M
  • Latin America
    $226M

Forward guidance

Kellogg Company affirmed its full-year financial guidance, with sales and profit delivery shifting toward the first half of the year.

Tailwinds

  • Organic net sales growth of +1-2%.
  • Cash provided by operating activities is projected to be $1.5 to $1.6 billion.
  • Capital expenditures are expected to be approximately $0.6 billion.
  • Cash flow, defined as cash provided by operating activities reduced by capital expenditures, continues to be projected at $0.9 to $1.0 billion.

Headwinds

  • Adjusted operating profit on a currency-neutral basis decline of approximately (4)%, as the absence of results from divested businesses more than offsets growth in the base business.
  • Adjusted earnings per share, on a currency-neutral basis, decline of (3) to (4)%, as the absence of results from divested businesses more than offsets growth in the base business.
  • Excluded from this guidance are significant supply chain or other market disruptions related to the pandemic or global economy.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

+0.6%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+1.4%

Avg return

30 days after

49%

33 / 67 earnings

Positive

+8.9%

Q2 2019

Best reaction

-10.9%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025
Q3 2025+0.1%+0.2%+0.7%
Q2 2025-0.0%-0.1%-0.4%
Q1 2025-0.0%-0.9%-0.6%
Q4 2024+0.3%+0.4%+0.7%
Q3 2024-0.3%+0.0%+0.3%
Q2 2024+8.3%+26.1%+38.3%
Q1 2024+6.2%+8.2%+5.8%
Q4 2023-0.4%+1.0%+1.0%
Q3 2023+2.2%+2.6%+5.5%
Q2 2023-2.8%-4.8%-10.2%
Q1 2023-1.7%-1.5%-5.8%
Q4 2022+0.7%-0.0%-5.0%
Q3 2022-7.9%-5.8%-2.6%
Q2 2022+1.5%+1.7%-1.7%
Q1 2022+7.2%+7.5%-0.2%
Q4 2021+3.5%+4.6%-3.1%
Q3 2021-1.2%
Q2 2021+1.9%
Q1 2021+6.2%
Q4 2020-1.3%
Q3 2020-0.9%
Q2 2020-2.7%
Q1 2020-0.1%
Q4 2019-7.5%
Q3 2019+4.6%
Q2 2019+8.9%
Q1 2019-4.9%
Q4 2018-6.4%
Q3 2018-10.9%
Q2 2018+3.9%
Q1 2018+5.5%
Q4 2017+4.9%
Q3 2017+7.0%
Q2 2017+3.2%
Q1 2017+2.5%
Q4 2016+3.4%
Q3 2016-0.1%
Q2 2016+2.0%
Q1 2016-2.6%
Q4 2015+5.8%
Q3 2015-2.7%
Q2 2015+3.9%
Q1 2015-1.8%
Q4 2014-4.7%
Q3 2014+2.4%
Q2 2014-3.6%
Q1 2014-1.8%
Q4 2013+1.7%
Q3 2013+1.3%
Q2 2013-1.5%
Q1 2013-1.5%
Q4 2012+1.5%
Q4 2011+2.0%
Q3 2012+2.6%
Q2 2012+5.3%
Q1 2012-0.3%
Q3 2011-1.0%
Q2 2011-1.4%
Q1 2011-0.4%
Q1 2010+1.0%
Q4 2007-0.3%
Q4 2010-0.3%
Q3 2009+0.8%
Q3 2010+0.8%
Q2 2010-0.1%
Q4 2009-0.1%
Q2 2009-0.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro