Kellogg Co. on Aug. 1 reaffirmed its guidance for 2019, which expects adjusted EPS to fall 10% to 11%, despite second-quarter results that beat estimates.
For the quarter ended June 29, adjusted diluted EPS came in at 99 cents, down 13.2% year over year but beating the S&P Global Market Intelligence consensus normalized EPS estimate of 92 cents.
Net income attributable to Kellogg fell to $286 million from $596 million in the year-ago period. Net sales for the period grew 3% to $3.46 billion, though adjusted operating profit fell 5.1% year over year to $452 million.
The cereal and snacks maker said that its snack brands pushed up sales along with gains from its Multipro acquisition.
In morning trading, Kellogg shares jumped 9.7% to $63.86 each.
Despite beating estimates, Kellogg said it still expects higher input costs and effective tax rates will push down EPS. The company also continues to expect operating profit to drop by 4% to 5%, while currency-neutral and organic net sales will grow 1% to 2%.
During the quarter, Kellogg divested its cookie brands to Ferrero SpA for $1.3 billion. Kellogg said it plans to use the proceeds to pay off debt. The snack maker also announced plans to cut jobs and reorganize its North American business.