NYSE$K

Kellanova · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Kellogg Company reported a solid finish to 2019 with net sales decreasing by approximately 3% year on year, but organic net sales increased by nearly 3%.

Kellogg Company's Q4 2019 results showed a decrease in reported net sales due to the absence of results from divested businesses, but organic net sales increased. The company's primary financial objective in 2019 was to deliver net sales growth, which they achieved through the execution of their Deploy For Growth strategy.

  • Full year net sales growth was delivered on a reported and organic basis.
  • Results finished the year within or better than guidance ranges for key metrics.
  • Divestiture of non-core businesses enhanced long-term focus and profitability.
  • Sustained return to organic-basis net sales growth in the fourth quarter.

Headline financials

Total Revenue

$3.22B

Previous: $3.32B-2.8%
EPS (adj)

$0.91

Previous: $0.91+0.0%
Organic revenue growth

2.7%

No prior period
Capital Expenditures

$150M

Previous: $189M-20.6%
Free Cash Flow

$101M

Previous: $421M-76.0%
Net Income

$152M

Previous: -$84M+281.0%
Operating Income

$360M

Previous: $326M+10.4%
Gross Profit

$1.09B

Previous: $1.09B-0.1%
Cash & Equivalents

$397M

Previous: $321M+23.7%
Total Assets

$17.6B

Previous: $17.8B-1.2%
Stock-Based Comp

$19M

Previous: $22M-13.6%

Revenue & EPS history

Kellanova · Revenue · Quarterly

$3.22B

Q4 2019-2.8%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Kellanova · $3.22B total across 4 segments · Q4 2019

  • North America
    $1.89B
  • AMEA
    $570M
  • Europe
    $526M
  • Latin America
    $233M

Forward guidance

The Company issued its initial financial guidance for 2020. Specifically, the Company is projecting organic net sales to increase by +1-2%.

Tailwinds

  • Organic net sales to increase by +1-2%.
  • Cash flow is expected to improve to $0.9 to $1.0 billion.
  • Projecting organic net sales to increase
  • Improved cash flow
  • currency-neutral adjusted operating profit and earnings per share growth excluding the impact of its recent divestiture

Headwinds

  • Adjusted operating profit on a currency-neutral basis is expected to decline (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, is expected to decline (3) to (4)%,as the absence of results from divested businesses more than offsets growth in the base business.
  • Adjusted operating profit on a currency-neutral basis is expected to decline
  • Adjusted earnings per share, on a currency-neutral basis, is expected to decline
  • Absence of results from divested businesses

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%

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