What To Expect From Kellanova’s (K) Q4 Earnings

Packaged foods company Kellanova (NYSE:K) will be reporting earnings tomorrow morning. Here’s what to look for.

Kellanova beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $3.23 billion, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ organic revenue estimates but a miss of analysts’ 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 2% year on year to $3.11 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.

Analysts covering the company have generally 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 four times over the last two years.

Looking at Kellanova’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mondelez delivered year-on-year revenue growth of 3.1%, meeting analysts’ expectations, and BellRing Brands reported revenues up 23.8%, topping estimates by 1.2%. BellRing Brands traded down 4.1% following the results.

Read our full analysis of Mondelez’s results here and BellRing Brands’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the shelf-stable food stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.8% 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 $81.02 (compared to the current share price of $81.75).

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