Kellogg stock slips after profit beats expectations but sales comes up shy

Shares of Kellogg Co. slipped 0.7% in premarket trading Thursday, after the breakfast cereal and snacks giant reported second-quarter profit that beat expectations but sales that came up a bit shy. Net income rose to $357 million, or $1.03 a share, from $326 million, or 95 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.25 beat the FactSet consensus of $1.11. Sales grew 4.6% to $4.041 billion, below the FactSet consensus of $4.064 billion. The company said it continues to progress toward the separation of its North America cereal business, which is expected to be completed during the fourth quarter. In the meantime, North America cereal sales rose 1.8% from last year, while snacks sales increased 4.3% and frozen sales were up 3.0%. For 2023, the company nudged up its guidance range for adjusted earnings per share, excluding currency, to a decline of 1% to a decline of 2% from a decline of 1% to a decline of 3%. The stock has shed 6.8% over the past three months through Wednesday, while the S&P 500 has gained 10.3%.

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