Kellanova (K), valued at a market cap of $28.4 billion, is a leading global snack and convenience foods company, formerly part of the Kellogg Company. Headquartered in Chicago, Illinois, Kellanova focuses on popular brands such as Pringles, Cheez-It, Pop-Tarts, Nutri-Grain, RXBAR, and Eggo. The food company is expected to announce its Q1 earnings results before the market opens on Thursday, May 1.
Ahead of the event, analysts expect Kellanova to report a profit of $0.98 per share on a diluted basis, down 3% from $1.01 per share in the year-ago quarter. The company has consistently exceeded Wall Street’s EPS estimates in all of the last four quarterly reports.
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Its adjusted earnings of $0.92 per share in the last reported quarter outpaced the consensus estimates by 12.2%, thanks to strong pricing actions, improved supply chain efficiencies, and sustained demand for its core snacking brands like Pringles and Cheez-It.
For the current year, analysts expect Kellanova to report EPS of $3.91, up 1.3% from $3.86 in fiscal 2024. Its EPS is expected to rise 2.8% year over year to $4.02 in fiscal 2026.
Kellanova's shares have gained 46.9% over the past year, significantly outperforming the S&P 500 Index's ($SPX) 5.4% gain and the Consumer Staples Select Sector SPDR Fund’s (XLP) 11.6% gains during the same period.
On Feb. 6, Kellanova's shares rose marginally following the release of its Q4 results. With revenue reaching $3.12 billion, Kellanova surpassed analysts' forecast of $3.10 billion, driven by strong demand across its product range. The company's strong performance was driven by a 2.8% increase in volume, strategic pricing actions, and product innovation, such as new offerings and partnerships. The company also saw regional growth, particularly in Asia-Pacific and Latin America, though foreign currency fluctuations impacted some regions.
Kellanova's stock has a cautious outlook, with 16 analysts recommending a "Hold" rating.
The stock is currently trading above its mean price target of $81.47.
On the date of publication, Kritika Sarmah 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.
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