Kellogg Misses Sales Expectations, But Boosts Profit Outlook

Shares of Kellogg Co. rose 1.1% in premarket trade Thursday, after the cereals and snacks company matched second-quarter profit expectations, but provided an upbeat outlook for the year. Earnings rose to $280 million, or 79 cents a share, from $223 million, or 63 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 91 cents, matching the FactSet consensus. Revenue fell 6.6% to $3.27 billion from $3.50 billion, primarily because of the remeasurement of the Venezuelan business. The FactSet consensus was $3.36 billion. Sales of Kellogg's U.S. morning foods and snacks businesses declined. The company raised its 2016 EPS outlook, on a currency-neutral basis, to a range of $4.11 to $4.18 from $4.00 to $4.07. The stock climbed 12% year to date through Wednesday, while the S&P 500 has gained 5.9%.