Stock Story -
Packaged foods company Kellanova (NYSE:K) will be announcing earnings results tomorrow before market open. Here's what to expect.
Kellanova beat analysts' revenue expectations by 3.1% last quarter, reporting revenues of $3.17 billion, flat year on year. It was a decent quarter for the company, with an impressive beat of analysts' organic revenue growth estimates.
Is Kellanova a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Kellanova's revenue to decline 5.5% year on year to $3.16 billion, a reversal from the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 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.
Looking at Kellanova's peers in the shelf-stable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. McCormick (NYSE:MKC) delivered year-on-year revenue growth of 2.4%, beating analysts' expectations by 3.3%, and Simply Good Foods reported revenues up 5.3%, falling short of estimates by 1.3%. McCormick traded up 8.8% following the results while Simply Good Foods was down 1.2%.
Read the full analysis of McCormick's and Simply Good Foods's results on StockStory.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the shelf-stable food stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Kellanova is up 1% during the same time and is heading into earnings with an average analyst price target of $60.1 (compared to the current share price of $58.25).
![Kellanova (K) Q1 Earnings Report Preview: What To Look For](https://d68-invdn-com.investing.com/content/pice06c3c96a134ca4bd6b00fb6a9381c3a.jpeg)