Based in Chicago, Illinois, Kellanova (K) is a global leader in the food manufacturing industry, known for its diverse portfolio of cereals and snacks. With a market cap of $19.25 billion, Kellanova is renowned for its innovative product offerings and strong brand presence, providing consumers with nutritious and delicious food options that enhance their daily lives. The company is set to announce its fiscal Q2 earnings results before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect K to report a profit of $0.90 per share, down 28% from $1.25 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $1.01 per share for the last quarter surpassed the consensus estimate by 18.8%. Strong organic net sales growth and effective cost management drove Kellanova's performance in the last quarter.
For fiscal 2024, analysts expect K to report EPS of $3.62, up 12.1% from $3.23 in fiscal 2023.
K stock has gained 1.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 18.4% gains. However, the stock has been outperforming the iShares Emergent Food and Agtech Multisector ETF (IVEG) 2.3% decline over the same time frame.
On May 2, K’s shares closed up more than 7% following the Q1 results announcement. The company reported a 5.4% increase in organic net sales, with revenue reaching $3.2 billion, surpassing analyst estimates of $3.16 billion.
The consensus opinion on K stock is cautious, with an overall “Hold” rating. Of the 16 analysts covering the stock, two advise a “Strong Buy” rating, and 14 recommend a “Hold.” K’s average analyst price target is $62.40, indicating a potential upside of 9.7% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
