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Kellogg Jumps on Raised Guidance and Quarterly Beat

Kellogg's raised its profit expectations thanks to a strong first quarter. The stock is higher.
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Shares of Kellogg  (K) - Get Kellogg Company Report jumped Thursday after the cereals icon reported stronger-than-expected first-quarter earnings and boosted its outlook for the year. 

Kellogg's shares at last check were 7.6% higher at $67.86. The stock has bounced off a 52-week low $56.61, touched on Feb. 11, and it's now about 7.4% short of its 52-week high $72.88, set at the end of July 2020.  

The Battle Creek, Mich., company in the quarter earned $1.11 a share on revenue of $3.58 billion. 

Analysts surveyed by FactSet were expecting earnings of 96 cents a share on revenue of $3.38 billion. 

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"Amidst continued difficult circumstances, our organization executed exceptionally well," Chief Executive Steve Cahillane said in a statement. 

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"The quarter featured continued momentum in major brands and categories, accelerated growth in emerging markets, and effective management of cost pressures through productivity and revenue growth management."  

As a result of the quarter, Kellogg's raised its full-year guidance, with net sales now expected to finish flat year over year, compared with its previous guidance of a decline of about 1%. 

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Adjusted earnings are now expected to grow between 1% and 2% year over year, an improvement from its previous guidance of a 1% increase. 

A year ago, "The pandemic drove elevated at-home demand during the quarter, particularly for the company's cereal and frozen-foods products in developed markets, leading to higher-than-expected net sales," the company said

Kellogg's first-quarter net sales increased 2% in North America, 10% in Europe, 4% in Latin America and 14% in Asia-Pacific.