Tuesday morning, Kellogg (K) announced that its third-quarter net income dropped 6% thanks to slumping cereal sales. In addition to the weakening cereal sales, Kellogg saw competition strengthen and continuing impact from a cereal recall.

First things first, the cereal king reported earnings of 90 cents per share ($338 million), which came in lower than last year's earnings of 94 cents per share ($361 million).

Continue reading Kellogg Reports Soggy Earnings Results

Kellogg Reports Soggy Earnings Results originally appeared on BloggingStocks on Tue, 02 Nov 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading General Mills Profit Rises as Cereal, Organic Products Sales Grow

General Mills Profit Rises as Cereal, Organic Products Sales Grow originally appeared on BloggingStocks on Wed, 22 Sep 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading General Mills Down After Q4 Report

General Mills Down After Q4 Report originally appeared on BloggingStocks on Wed, 30 Jun 2010 16:10:00 EST. Please see our terms for use of feeds.

Continue reading General Mills lowers sugar content for kids

General Mills lowers sugar content for kids originally appeared on BloggingStocks on Wed, 09 Dec 2009 15:50:00 EST. Please see our terms for use of feeds.

Continue reading Kellogg keeps rolling along

Kellogg keeps rolling along originally appeared on BloggingStocks on Mon, 02 Nov 2009 17:00:00 EST. Please see our terms for use of feeds.

Kellogg Company (NYSE: K) didn't need a hearty breakfast to get its stock going today (although I'm sure it had one anyway). All it needed was a reasonably healthy earnings report. Judging by how the stock is performing, I think the company got one.

For the third quarter, Kellogg saw flat sales growth. However, take out currency effects and acquisitions, and you've got a 3% expansion rate on the top line. Well, that isn't so robust, either, but let's head to the bottom line. Earnings per share came in at 94 cents, representative of a 6% increase. Not so bad, and according to Mark Fightmaster's preview, that was a dime better than what analysts wanted to see.

Continue reading Kellogg's Q3 top line not great, but bottom line beats projections

Kellogg's Q3 top line not great, but bottom line beats projections originally appeared on BloggingStocks on Thu, 29 Oct 2009 18:00:00 EST. Please see our terms for use of feeds.

Before the market opens on Thursday, October 29, cereal producer Kellogg (NYSE: K) will release its third-quarter earnings. Analysts expect the company to earn 84 cents per share in the quarter, with revenue of $3.28 billion.

In the second quarter, Kellogg saw its profit increase 13%, which gave the cereal thriller reason to up its full-year forecast. Before the second-quarter report, Kellogg expected high single-digit-percentage growth for 2009; however, this was upped to 8% to 10% following the strong second quarter. In addition, Kellogg believes it will save $1 billion annually by the end of fiscal 2011. This money will then be reinvested into advertising, which could lead to more money for the company.

Continue reading Kellogg earnings preview: Is the momentum sustainable?

Kellogg earnings preview: Is the momentum sustainable? originally appeared on BloggingStocks on Wed, 28 Oct 2009 12:10:00 EST. Please see our terms for use of feeds.

Let's file this under something that didn't need to happen (kind of like a Bob Dylan Christmas album) -- if the story is real. Apparently, Kellogg (NYSE: K) is planning to battle the rampant counterfeit cornflake market by individually laser etching its name into each of your cornflakes. Seriously, the Guardian quotes Kellogg's as stating, "Now you'll be able to tell your Corn Flakes from you corn fakes!"

So, is it real? It seems like a good number of bloggers feel that this is a hoax, but there are others that are covering the story like it is true news. So are we dealing with a master hoax or reality? We will find out in the coming days, I am sure, but let's treat this like it is real. Could you imagine personalized Corn Flakes? Perhaps we could call them (insert your own name here) Flakes, with your last name etched into each corn flakey little morsel. The possibilities are endless: advertising, wedding proposals, birthday wishes. Of course someone would have to read the flakes before they get soggy.

Continue reading Laser-etched Corn Flakes of the future?

Laser-etched Corn Flakes of the future? originally appeared on BloggingStocks on Thu, 15 Oct 2009 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Morgan Stanley upgrades General Mills

Morgan Stanley upgrades General Mills originally appeared on BloggingStocks on Tue, 06 Oct 2009 08:30:00 EST. Please see our terms for use of feeds.

Those Cheerios commercials must be working. General Mills (NYSE: GIS) reported on Wednesday that its profit for the first quarter of its fiscal year spiked 51%, thanks to a hefty dose of product demand and lower costs for ingredients. Of course, this beat the hell out of analyst expectations. And, it caused General Mills to boost its outlook for the year.

For the quarter, General Mills posted $420.6 million in earnings ($1.25 per share). For the same quarter a year ago, earnings reached only $278.5 million ($0.79 a share). The company's profit was a tad higher when an expense related to commodity positions is excluded, pushing earnings per share up to $1.28. Analysts had expected earnings of $1.03 a share.

Continue reading Pillsbury helps General Mills pop ... hehehehe

Pillsbury helps General Mills pop ... hehehehe originally appeared on BloggingStocks on Thu, 24 Sep 2009 12:00:00 EST. Please see our terms for use of feeds.

Everything turned out all right for shareholders. Sales weren't so hot: the top line decreased 3% on dollar pressures. Earnings per share saved the day, coming in at 92 cents, good for a 12% increase. The income amount also beat expectations by a very significant margin. Analysts wanted to see at least 83 cents for per-share profit, according to Earnings.com.

Continue reading Kellogg's Q2 more nutritious than analysts thought

Kellogg's Q2 more nutritious than analysts thought originally appeared on BloggingStocks on Fri, 31 Jul 2009 15:10:00 EST. Please see our terms for use of feeds.

Continue reading General Mills profits as more Americans eat at home

General Mills profits as more Americans eat at home originally appeared on BloggingStocks on Wed, 08 Apr 2009 08:30:00 EST. Please see our terms for use of feeds.

General Mills (NYSE: GIS), a company that is always in a fight with Kellogg (NYSE: K), reported earnings for the fiscal first quarter on Wednesday. The stock held up very well amid all the chaotic selling that gripped Wall Street on that awful day. And why not? You know the drill. This is a defensive name, people still have to eat cereal while the bears are knocking at the door, etc.

The quarter was pretty good. Sales increased 14% to $3.5 billion. Adjusted earnings per share increased 19% to $0.96 (this excludes the effect of a mark-to-market valuation involving commodities). As if all that wasn't enough, there was a huge increase in net cash from operations. Last year at this time, General Mills generated about $21 million in operational cash flow. This year's quarter saw that metric jump over ten times to nearly $226 million. There was one problem, however. Capital expenditures and dividend obligations were higher than that number. I generally like to see operational cash easily take care of both those requirements.

Alas, it was not to be this quarter. That's okay. I think General Mills is a healthy company, and I believe it will continue to be able to pass along price increases to help fortify its bottom line. Guidance for fiscal 2009 was increased to $3.81 to $3.85 per share. The old outlook called for $3.78 to $3.83. And as for the cereal-maker's stock, it has been very, very strong. General Mills' stock was up more than 20% year-to-date. Over the last month, it's been up 3%. Heck, I'd take that, all things considered. It's not far from a 52-week high.

Personally, I think General Mills is a great way to tackle the bears that are patrolling the market, but I'd wait for a pullback. I'd rather look at the company when its dividend yield is a little higher than where it currently stands. If I bought now for a trade, I would definitely use a stop to protect the position. As I've said before, there aren't many safe bets in this environment.

Disclosure: I don't own any company mentioned; positions can change at any time.

General Mills: Hearty quarter, healthy stock originally appeared on BloggingStocks on Thu, 18 Sep 2008 12:12:00 EST. Please see our terms for use of feeds.

General Mills (NYSE: GIS), arch competitor of fellow cereal seller Kellogg (NYSE: K), posted some good news for shareholders on Monday. In an otherwise gloomy day that saw the Dow remain below the 12,000 level and inflationary pressures still exerting a hold over the market, General Mills proved that dividends are at least one island of safety in a sea of trouble.

The company indicated that it will now pay an annual dividend of $1.72 per share. Previously, the annual dividend was set at $1.57 per share. This is a nice example of double-digit appreciation of approximately 10%. Based on Monday's closing price, General Mills' stock now yields a hearty 2.7%.

As a long-term idea, General Mills is certainly one of the best. As I observed with Kellogg, you can put this one on perpetual dollar-cost-averaging. However, with the stock in 52-week-high territory, and with prices for commodities, especially corn, still exerting a negative effect on businesses, I'd be a bit cautious about entering just now. Is it possible one might get General Mills closer to a 3% yield? I can't predict the short-term future, but my gut says that a pullback is inevitable. Even with cool dividend increases, stocks can return to the low end of a 52-week range at any point. Just look at Coca-Cola (NYSE: KO) and the recent pressure its stock has been under. And Coke is a dividend stalwart. Nevertheless, I am bullish on General Mills' future. Just watch out for commodity trends, and perhaps remain patient for better prices on the shares.

Disclosure: I own Coke; positions can change at any time.

General Mills ups dividend and is near a 52-week high -- is it a strong buy? originally appeared on BloggingStocks on Tue, 24 Jun 2008 09:47:00 EST. Please see our terms for use of feeds.

Continue reading General Mills knows that Wheaties and Cheerios never go out of style

General Mills knows that Wheaties and Cheerios never go out of style originally appeared on BloggingStocks on Thu, 08 May 2008 16:46:00 EST. Please see our terms for use of feeds.

Malt-O-Meal recalls breakfast cereals due to salmonella poisoning originally appeared on BloggingStocks on Mon, 14 Apr 2008 15:01:00 EST. Please see our terms for use of feeds.

Continue reading Rice, grain price hikes likely mean even higher U.S. grocery bills ahead

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Wheat prices hit record high -- and a strange picture to go with it originally appeared on BloggingStocks on Mon, 11 Feb 2008 11:57:00 EST. Please see our terms for use of feeds.

Continue reading Wheat tops $10 per bushel -- could cereal become too expensive?

Wheat tops $10 per bushel -- could cereal become too expensive? originally appeared on BloggingStocks on Mon, 17 Dec 2007 12:47:00 EST. Please see our terms for use of feeds.

Revenue jumped 6% during the quarter to $3 billion, edging past analysts' revenue target of $2.99 billion. Net sales in North America were up 3% as consumers scooped up frozen foods and specialty items. Cereal sales were unchanged amid higher-than-normal inventories. International net sales jumped 5%, with trends especially strong in the Latin-American region.

This positive earnings surprise transpired despite a backdrop of rising wheat, corn, dairy, and fuel prices that have challenged the food industry and spurred a broad price hike. In response, K has increased its prices by 1.8% for the 12 weeks ended October 6, compared with a 3.2% year-over-year price lift as of October 6.

Continue reading Kellogg's earnings: They're (kind of) grrreat!

Kellogg's earnings: They're (kind of) grrreat! originally appeared on BloggingStocks on Mon, 29 Oct 2007 11:58:00 EST. Please see our terms for use of feeds.