Valued at a market cap of $27.6 billion, Kellanova (K) manufactures and markets snacks and convenience foods. The Chicago, Illinois-based company offers a wide range of products under various well-known brands, including Kellogg's, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, and Morningstar Farms to name a few. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Thursday, Jul. 31.
Ahead of this event, analysts expect this snacks and convenience food company to report a profit of $0.99 per share, down 2% from $1.01 per share in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates in three of the last four quarters, while missing on another occasion. In Q1, Kellanova’s EPS of $0.90 fell short of the forecasted figure by 8.2%.
For fiscal 2025, analysts expect K to report a profit of $3.76 per share, down 2.6% from $3.86 per share in fiscal 2024. Nonetheless, its EPS is expected to grow 2.7% year-over-year to $3.86 in fiscal 2026.
Shares of Kellanova have rallied 39.8% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 12.1% uptick and the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.8% return over the same time frame.
Shares of Kellanova rose marginally on May 1, following its Q1 earnings release. Due to negative currency translation and widespread category softness, the company's overall revenue declined 3.7% year-over-year to $3.1 billion. Nonetheless, it sustained growth on an organic basis, driven by robust performance in its emerging markets. Meanwhile, on the earnings front, its adjusted operating profit fell 13.2% from the year-ago quarter to $441 million. In comparison, its adjusted EPS of $0.90 dipped 10.9% from the same period last year and fell short of the consensus estimates by 8.2%.
Wall Street analysts are cautious about K’s stock, with a unanimous "Hold" rating from all 15 analysts covering it. The mean price target for Kellanova is $83.39, which indicates a 5% potential upside from the current levels.
