NEW YORK (TheStreet) -- Kellogg (K) shares are up 0.81% to $64.65 in trading on Tuesday after the cereal and packaged food manufacturer reported that first quarter cost cuts helped it beat analysts' earnings expectations despite a 44% drop in profits.
The Battle Creek, MI-based company reported first quarter net income $227 million, versus $406 million in the year ago period, for an EPS of 98 cents per diluted share. Revenue for the period fell 5% to $3.56 billion as the company executes its four year cost cutting 'Project K' program which is expected to save Kellogg between $425 million and $475 million by 2018.
Analysts on average were expecting the company to report earnings of 91 cents per share on revenue of $3.55 billion.
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."