Financial News
Kellanova (K) Reports Earnings Tomorrow: What To Expect
Packaged foods company Kellanova (NYSE:K) will be reporting results tomorrow before the bell. Here’s what to look for.
Kellanova beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $3.19 billion, down 4.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue growth and EBITDA estimates.
Is Kellanova a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kellanova’s revenue to decline 3.1% year on year to $3.15 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kellanova has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Kellanova’s peers in the shelf-stable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simply Good Foods delivered year-on-year revenue growth of 17.2%, meeting analysts’ expectations, and General Mills reported a revenue decline of 1.2%, in line with consensus estimates. Simply Good Foods traded up 3.8% following the results while General Mills’s stock price was unchanged.
Read our full analysis of Simply Good Foods’s results here and General Mills’s results here.
Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices flat over the last month. Kellanova’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $80.10 (compared to the current share price of $80.57).
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