Kellogg Earnings: Looming Split Overshadows Solid First-Quarter Marks; Shares Attractive

Even as wide-moat Kellogg chalked up solid first-quarter results (13.7% organic sales growth, 90 basis points of gross margin improvement to 31.3%, and a 50-basis-point uptick in adjusted operating margin to 13.5%), the market has its eyes on the impending split of Kellogg's global snacking and North American cereal arms (slated to commence by yearend). It appears patience is wearing thin at the lack of disclosures (tentatively scheduled to hit the presses in late summer), evidenced by the 3% downdraft in shares on the print.