Earnings Review: Kellogg Company, Potash Corp, Bristol Myers Squibb
Kellogg Company (NYSE:K) shares slid slightly in the pre-market session as the company reported lower-than-estimated first quarter earnings hurt by a 13% fall in net profit in Europe.
The company earned $358 million, or $1 per share, for the quarter, down 1.30% from a year ago profit $365 million, or $1 per share, a year ago. On an adjusted basis, the company would have earned 95 cents a share, missing analysts’ target by 4 cents.
Earlier this week, the company the company projected operating profit to fall 2 to 4 in 2012, from its prior forecast of flat or up slightly. It said 2012 sales should rise 2 to 3, down from a prior forecast for 4 to 5.
Net sales in Europe decreased 13.4 due to “continued weakness in the region and issues specific to the business,” Kellogg said on Thursday.
Potash Corp./Saskatchewan (USA)(NYSE:POT) shares slid over 2% as the company failed to meet Wall Street’s expectations in the first quarter.
The company reported profit of $491 million, or 56 cents a share, down from a year ago profit of $732 million, or 84 cents a share. Analysts were targeting 63 cents a share.
Potash Corp said it now expects total global potash demand to be in the 53 million to 56 million tonne range this year, with its own sales volumes in the range of 8.8 million to 9.2 million tonnes. In January, it had forecast global sales of 55 million to 58 million tonnes, with its own shipments in the 9.2 million to 10 million tonne range.
The company also said it expects 2012 gross margins from its key potash business to be $2.6 billion to $2.9 billion. It had previously expected gross margins to be in the $2.9 billion to $3.3 billion range.
Bristol Myers Squibb Co. (NYSE:BMY) reported 12% increase in first-quarter profit, topping analysts’ estimates. The company posted net income of $1.1 billion or 64 cents per share in the first quarter, a penny above from analysts’ estimates. In the year-earlier quarter, the company earned $986 million, or 57 cents per share.
Global company revenue grew 5% to $5.25 billion, in line with Wall Street expectations.
Shares of BMY are down 1.57%.