Benzinga | Nov 4, 2021 09:40AM EDT

Kellogg Q3 Earnings Top Estimates

* Kellogg Company (NYSE:K) reported third-quarter FY21 sales growth of 5.6% year-on-year, to $3.62 billion, beating the analyst consensus of $3.54 billion.

* Adjusted EPS of $1.09 beat the analyst consensus of $0.93.

* Kellogg North America's sales remained flat, Europe increased 14%, Latin America sales gained 7%, Asia Pacific, Middle East, and Africa's sales jumped 17%.

* Selling, general and administrative expenses declined 9.1% Y/Y to $718 million.

* The operating margin was 12.3%, and operating income for the quarter rose 9% to $447 million.

* The reported gross margin was 32.1%, while the adjusted gross margin contracted 250 basis points to 32.2%.

* Kellogg held $440 million in cash and equivalents as of October 2, 2021, and generated an operating cash flow year-to-date of $1.1 billion. Net debt was $7.1 billion as of October 2, 2021.

* Outlook: Kellogg raised its FY21 sales growth guidance to 2% - 3% (prior guidance of 0 - 1%).

* Kellogg reaffirmed its full-year financial guidance for operating profit, EPS, and cash flow.

* Price Action: K shares traded higher by 0.33% at $63.55 on the last check Thursday.