Kellogg to report Q4 results Thursday

Earnings Preview: Kellogg Co.

PORTLAND, Ore. — Kellogg Co, the world’s leading cereal maker, reports its fourth-quarter results before the market opens Thursday.

WHAT TO WATCH FOR: Early payoff from heavier advertising after the company recently said it would increase its advertising spending by double digits.

Kellogg’s brand-name products, including Rice Krispie and Special K cereals, have remained popular during the economic downturn as consumers began to eat at home more often and stayed true to their favorite foods. Kellogg, which is based in Battlecreek, Mich., wants to hold on to or grow that base by taking advantage of lower advertising costs to emphasize the affordability of its products.

Sales aren’t expected to grow significantly for the quarter but the company has made several long-term adjustments to maintain profitability.

WHY IT MATTERS: Kellogg is one of the top performers among the packaged food industry. It recently raised its full-year earnings guidance on its strong expectations.

Any slippage from this path could indicate larger trends in food pricing or consumer-spending habits.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters expect Kellogg to earn 48 cents per share on revenue of $2.94 billion.

LAST YEAR’S QUARTER: Kellogg reported it earned $179 million, or 47 cents per share, on revenue of $2.93 billion.