CHICAGO - Kellanova (NYSE: K) reported better-than-expected earnings and revenue for the second quarter of 2024, sending its stock price up 4% in after-hours trading.
The snacking giant reported earnings per share (EPS) of $1.01, surpassing the analyst estimate of $0.90 by $0.11. Revenue for the quarter came in at $3.19 billion, also exceeding the consensus estimate of $3.15 billion.
"We are pleased to report another quarter of strong results, driven by the continued strength of our iconic brands and our ongoing focus on innovation," said Steve Cahillane, Chairman, President, and Chief Executive Officer of Kellanova. "Our team's execution was excellent, and we remain confident in our ability to deliver sustainable, long-term growth."
Kellanova's net sales increased 6% YoY to $3.19 billion, with organic sales growth of 5%. The company's adjusted operating profit margin expanded by 60 basis points to 15.3%, reflecting productivity improvements and pricing actions.
The company also provided guidance for the third quarter and full-year 2024. For Q3, Kellanova expects adjusted EPS between $1.03 and $1.07, compared to the analyst consensus of $1.05. For the full year, the company projects adjusted EPS between $4.15 and $4.25, above the consensus estimate of $4.18.
"We are confident in our ability to continue delivering strong results and creating value for our shareholders," said Amit Banati, Vice Chairman and Chief Financial Officer of Kellanova. "Our iconic brands, global reach, and commitment to innovation position us well for long-term success."
Cahillane highlighted the company's plans to invest in marketing, innovation, and capacity expansion to drive future growth. He also expressed optimism about the company's prospects in emerging markets, particularly in Asia and Latin America.
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