Kellanova (K), headquartered in Chicago, Illinois, manufactures and markets snacks and convenience foods. Valued at $27.7 billion by market cap, the company offers snack products such as snacking, cereal, noodles, plant-based foods, and frozen breakfast with online delivery services. The leading global snacking company is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Thursday, Oct. 31.
Ahead of the event, analysts expect K to report a profit of $0.85 per share on a diluted basis, down 17.5% from $1.03 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect K to report EPS of $3.70, up 14.6% from $3.23 in fiscal 2023. Its EPS is expected to rise 5.4% year over year to $3.90 in fiscal 2025.
K stock has outperformed the S&P 500’s ($SPX) 37.5% gains over the past 52 weeks, with shares up 64% during this period. Similarly, it outperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 21.9% gains over the same time frame.
K's success can be credited to its solid financial performance, worldwide reach, and effective utilization of AI, ML, and data analytics to enhance operations and introduce new products such as Pringles Harvest Blends. This was further validated by its shares surging over 7% following the announcement of its acquisition by Mars for $83.50 per share, totaling $36 billion.
On Aug. 1, K shares closed up more than 6% after reporting its Q2 results. Its adjusted EPS came in at $1.01, up 12.2% year over year. The company’s revenue declined 4.7% year over year to $3.2 billion. Both surpassed analyst expectations.
Analysts’ consensus opinion on K stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, two advise a “Strong Buy” rating, and 15 give a “Hold.” While K currently trades above its mean price target of $79.34, the Street-high price target of $83.50 suggests an upside potential of 3.1%.
On the date of publication, Neha Panjwani 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.
