NEW YORK (TheStreet) -- Cereal and convenience food maker Kellogg (K) is scheduled to report its 2015 first quarter earnings results before the market open on Tuesday morning and analysts are expecting Kellogg to post a year-over-year decline in earnings and revenue for the most recent quarter.
Kellogg has been forecast to report earnings of 92 cents per share on revenue of $3.55 billion for the quarter ended March 2015.
Shares of Kellogg are up by 0.19% to $64.01 in mid-morning trading on Monday.
Last year, Kellogg said its comparable earnings were $1.01 per share, on net sales of $3.7 billion.
The company is based in Battle Creek, MI. and some of Kellogg's brands and products include Special K cereal, Pringles, Keebler, Pop Tarts, Eggo, Frosted Flakes, and Cheez-It.
Separately, TheStreet Ratings team rates KELLOGG CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate KELLOGG CO (K) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- K's revenue growth has slightly outpaced the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $616.00 million or 47.36% when compared to the same quarter last year. Despite an increase in cash flow, KELLOGG CO's average is still marginally south of the industry average growth rate of 56.71%.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Food Products industry and the overall market, KELLOGG CO's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for KELLOGG CO is currently lower than what is desirable, coming in at 29.14%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -8.33% is significantly below that of the industry average.
- The share price of KELLOGG CO has not done very well: it is down 5.24% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full analysis from the report here: K Ratings Report