Packaged foods company Kellanova (NYSE: K) will be reporting results this Thursday before market hours. Here’s what you need to know.
Kellanova missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $3.08 billion, down 3.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS 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 be flat year on year at $3.19 billion, improving from the 4.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.99 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 three times over the last two years.
Looking at Kellanova’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lamb Weston delivered year-on-year revenue growth of 4%, beating analysts’ expectations by 5.7%, and Mondelez reported revenues up 7.7%, topping estimates by 1.5%. Lamb Weston traded up 19.3% following the results.
Read our full analysis of Lamb Weston’s results here and Mondelez’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 3.6% on average 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 $83.40 (compared to the current share price of $80.14).
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