Kellogg tops earnings estimates and raises guidance as demand for at-home food is high during pandemic

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Kellogg Co. posted stronger-than-expected earnings for its third quarter and raised its guidance, as it continued to benefit from demand for at-home food during the pandemic. Kellogg posted net income of $348 million, or $1.01 a share, in the quarter, up from $248 million, or 72 cents a share, in the year-earlier period. Adjusted per-share earnings came to 91 cents, ahead of the 86 cents FactSet consensus. Sales rose to $3.429 billion from $3.372 billion, topping the $3.403 billion FactSet consensus. The company has increased production to meet higher demand during the pandemic, is focusing on fewer items and investing in workers, warehousing labor and transportation capacity. E-commerce sales remained strong, while away-from-home channels have continued to decline. The company is now expecting full-year adjusted EPS to grow about 2%, up from prior guidance of a decline of about 1%. Shares rose 2% premarket, but have fallen 8% in the year to date, while the S&P 500 has gained 1.3%.
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