Headquartered in Chicago, Illinois, Kellanova (K) is a leading global food company known for its iconic portfolio of brands and commitment to innovation in the food industry. Specializing in producing and marketing ready-to-eat cereals, snacks, and other convenience foods, Kellanova delivers trusted products to households worldwide. With a strong focus on sustainability and consumer-centric growth, the company boasts a market cap of $28.1 billion and operates across numerous international markets. Kellanova is poised to release its Q4 earnings results before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect Kellanova to report a profit of $0.83 per share on a diluted basis, up 6.4% from $0.78 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 $0.91 per share in the last reported quarter outpaced the consensus estimates by 7.1%.
For the full year, analysts expect Kellanova to report EPS of $3.75, up 16.1% from $3.23 in fiscal 2023. Its EPS is expected to rise 4.8% year over year to $3.93 in fiscal 2025.
Kellanova's shares have gained 52.3% over the past year, significantly outperforming the S&P 500 Index's ($SPX) 25.5% gain and the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.7% gains during the same period.
Kellanova's shares dipped slightly following its Q3 earnings results on Oct. 31 despite surpassing Wall Street's expectations. Revenue remained flat year-over-year at $3.23 billion, while adjusted EBITDA reached $548 million, beating estimates by 1.2%.
However, the free cash flow margin declined to 12.7%, compared to 18.1% in the previous year. On a positive note, organic revenue rose 6.1%, indicating modest growth, while sales volumes were flat year-over-year, a marked improvement from the 7.4% decline seen during the same quarter last year.
Kellanova's stock has a cautious outlook, with 16 analysts recommending a "Hold" rating. While K currently trades above its mean price target of $81.07, the Street-high price target of $83.50 suggests an upside potential of 2.3%.
