Kellogg’s Upcoming Q4 Results Preview

Deutsche Bank analysts provided their outlook on Kellogg Company (NYSE:K) ahead of the company’s Q4 results, scheduled to be reported on Feb 9.

According to the analysts, Q4/22 results themselves should be relatively non-controversial relative to Street expectations given (1) continued momentum in US consumption demand, and (2) relative specificity/clarity provided on the company's Q3/22 call.

However, the analysts see more questions related to future considerations. Although the analysts believe the company should be positioned to meet its long-term sales and operating profit targets in fiscal 2023, they noted that cost inflation and supply disruptions could challenge such expectations.

The analysts maintained their Hold rating but lowered their forward estimates and price target to $72 from $74. Overall, the analysts continue to look for more color around top-line momentum/ price elasticity, cost/margin recovery, FX/pension impacts, as well as further details around the company's 3-way split.