Goldman Sachs Expects Kellogg Stock to Trade Down Today Following 3Q Release

Goldman Sachs expects Kellogg Company

stock to trade down today following 3Q EPS reported below estimates. In the report, Goldman Sachs writes, "K reported relatively noisy 3Q2011 EPS of $0.80 vs. our estimate/consensus $0.89. It cut its full-year currency neutral EPS outlook to $3.27-$3.33, from $3.33- $3.40 (FX is expected to add $0.08 = fully loaded guidance of $3.35-$3.41 vs. $3.48 consensus). And initial FY2012 guidance of 2%-4% FX neutral EPS growth was issued. Assuming a 1% FX headwind in FY2012, initial guidance implies EPS of $3.38-$3.51 vs. our estimate of $3.61 and consensus of $3.78. The release leaves many questions unanswered." Goldman Sachs maintains its Neutral investment view on the stock, which is currently trading down $4.13 from yesterday's $54.04 closing price.