Stock Story -
What Happened: Shares of packaged foods company Kellanova (NYSE:K) jumped 5.6% in the morning session after the company reported second-quarter earnings results that significantly blew past analysts' organic revenue estimates. Its full-year EPS guidance also outperformed Wall Street's estimates. Notably, during the quarter, the company emphasized that organic revenue growth stood within its long-term target despite the negative impact of adverse currency translation and the 2023 divestiture of its business in Russia. Overall, we think this was a strong quarter that should satisfy shareholders. After the initial pop the shares cooled down to $60.75, up 4.5% from previous close.
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What is the market telling us: Kellanova's shares are not very volatile than the market average and over the last year have had only 2 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock gained 8.2% on the news that the company reported first-quarter results, which blew past analysts' organic revenue growth expectations. Its EPS also outperformed Wall Street's estimates. The topline endured headwinds driven by FX volatility as well as the divestiture of its business in Russia.
On the other hand, its gross margin missed analysts' expectations, and its operating margin missed Wall Street's estimates. Zooming out, we think this was still a decent, albeit mixed, quarter, showing that the company is staying on track.
Kellanova is up 5.1% since the beginning of the year, and at $60.75 per share it is trading close to its 52-week high of $66.64 from August 2023. Investors who bought $1,000 worth of Kellanova's shares 5 years ago would now be looking at an investment worth $954.27.
![Why Kellanova (K) Stock Is Up Today](https://d68-invdn-com.investing.com/content/pic66f30c8fcb5f2a5e055a2ef5cd6ec288.jpeg)