What's Driving Kellogg Stock Higher Thursday?
Shares of Kellogg (NYSE: K), a leading producer of consumer packaged foods including cereals and snacks, had risen by almost 10% as of noon Thursday after the company released better-than-expected second-quarter results.
Starting from the top, Kellogg's total net sales increased 3% to $3.46 billion during Q2, which exceeded analysts' consensus estimate of $3.41 billion. Management noted that the sales growth derived from broad-based organic growth, but on the bottom line, the company failed to meet analysts' estimates. Kellogg's net earnings checked in at $286 million, or $0.84 per share, which was well below the prior year's $596 million, or $1.71 per share, and lower than analysts' consensus estimate of $0.92 per share. Much of that decline was related to restructuring and divestment costs incurred when Kellogg sold Keebler biscuits and other assorted brands for $1.3 billion in April.
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