Why Kellogg Shares Declined 8% Despite Beating Estimates
Shares of Kellogg Company (NYSE: K), primarily a producer of snacks and convenience food with a long list of well-known brands, dropped nearly 9% early Thursday morning despite beating analysts' fourth-quarter estimates.
Sales declined 2.8% during the fourth quarter compared to the prior year, to $3.22 billion, but that result managed to top analysts' estimates calling for $3.18 billion. Adjusted earnings per share checked in at $0.91, again beating analysts' estimates calling for $0.86 per share. One factor for investors to note was the negative impact on net sales from Kellogg's divested businesses: On an organic basis, net sales increased by 2.7% during the fourth quarter.
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Source Fool.com
