Kellogg’s Q3 Profit Falls 6%, Matching View (K)


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Cereal maker Kellogg Company ( K ) on Tuesday said its third quarter profit fell 6% from last year, as results met analyst expectations.

The Battle Creek, MI-based company reported third quarter net income of $338 million, or 90 cents per share, compared with $361 million, or 94 cents per share, in the year-ago period. Revenue fell 4% from last year to $3.2 billion.

On average, Wall Street analysts expected a matching profit of 90 cents per share, on slightly lower revenue of $3.18 billion.

The company noted it was "disappointed" with the results, and forecast 2011 internal net sales growth in the low- to single-digits, with internal operating profit flat to down 2%.

Kellogg shares fell 40 cents, or -0.8%, in premarket trading Tuesday.

The Bottom Line
Shares of Kellogg ( K ) have a 3.19% dividend yield, based on last night's closing stock price of $50.75. The stock has technical support in the $47-$48 price area. If the shares can firm up, we see overhead resistance around the $52-$54 price levels. We would remain on the sidelines for now.

Kellogg Company ( K ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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