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Kellanova (K) Q4 Earnings Coming Up: Factors to Consider
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Kellanova (K - Free Report) is likely to register top- and bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $3.1 billion, suggesting a fall of 19.4% from the prior-year quarter’s reported figure. The consensus mark for 2023 revenues is pegged at $15.1 billion, suggesting a decline of 1.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 74 cents per share. The projection indicates a decline of 21.3% from the figure reported in the year-ago period quarter. The consensus mark for 2023 earnings is pegged at $4.12, indicating a drop of 2.1% from the prior-year period’s level.
Kellanova, which formerly operated as Kellogg Company, has a trailing four-quarter earnings surprise of 11.9%, on average.
Kellanova has been operating amid a challenging macro-environment. The company is battling heightened input cost inflation. Management has been witnessing supply-chain bottlenecks. K’s international presence keeps it exposed to risks of unfavorable currency translations. The persistence of these factors is likely to have hurt K’s performance in the fourth quarter of 2023.
Rising interest expenses and reduced pension income continue to strain consumers financially. An increase in price elasticities globally continues to be a hurdle. These factors might have put pressure on the company’s volume performance.
For the fourth quarter of 2023, Kellanova anticipates net sales of nearly $3.1 billion. The guidance assumes growing elasticities and the lapping of last year’s considerable price rises, somewhat offset by the return to full commercial activity. Management anticipates an adjusted operating profit of $380-$390 million for the quarter. Finally, K envisions quarterly adjusted earnings per share (EPS) in the range of 73-76 cents, suggesting a year-over-year decline.
That being said, Kellanova is on track with pricing actions and revenue growth management to aid growth. The company boasts a portfolio of strong brands such as Pringles, Cheez-It, Pop-Tarts, Rice Krispie Treats and Eggo, which are yielding.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Kellanova this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kellanova carries a Zacks Rank #3 and has an Earnings ESP of -1.93%.
Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these have the correct elements to beat on earnings this time.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating an almost 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 71 cents per share, calling for a 27.6% decline from the year-ago quarter’s levels. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decline of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 3. KO is likely to register top- and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The consensus estimate for earnings suggests 8.1% growth from the year-ago quarter’s reported number. KO has delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
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Kellanova (K) Q4 Earnings Coming Up: Factors to Consider
Kellanova (K - Free Report) is likely to register top- and bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $3.1 billion, suggesting a fall of 19.4% from the prior-year quarter’s reported figure. The consensus mark for 2023 revenues is pegged at $15.1 billion, suggesting a decline of 1.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 74 cents per share. The projection indicates a decline of 21.3% from the figure reported in the year-ago period quarter. The consensus mark for 2023 earnings is pegged at $4.12, indicating a drop of 2.1% from the prior-year period’s level.
Kellanova, which formerly operated as Kellogg Company, has a trailing four-quarter earnings surprise of 11.9%, on average.
Kellanova Price and EPS Surprise
Kellanova price-eps-surprise | Kellanova Quote
Things To Consider
Kellanova has been operating amid a challenging macro-environment. The company is battling heightened input cost inflation. Management has been witnessing supply-chain bottlenecks. K’s international presence keeps it exposed to risks of unfavorable currency translations. The persistence of these factors is likely to have hurt K’s performance in the fourth quarter of 2023.
Rising interest expenses and reduced pension income continue to strain consumers financially. An increase in price elasticities globally continues to be a hurdle. These factors might have put pressure on the company’s volume performance.
For the fourth quarter of 2023, Kellanova anticipates net sales of nearly $3.1 billion. The guidance assumes growing elasticities and the lapping of last year’s considerable price rises, somewhat offset by the return to full commercial activity. Management anticipates an adjusted operating profit of $380-$390 million for the quarter. Finally, K envisions quarterly adjusted earnings per share (EPS) in the range of 73-76 cents, suggesting a year-over-year decline.
That being said, Kellanova is on track with pricing actions and revenue growth management to aid growth. The company boasts a portfolio of strong brands such as Pringles, Cheez-It, Pop-Tarts, Rice Krispie Treats and Eggo, which are yielding.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Kellanova this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kellanova carries a Zacks Rank #3 and has an Earnings ESP of -1.93%.
Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these have the correct elements to beat on earnings this time.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record top-and bottom-line declines when it reports fourth-quarter 2023 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating an almost 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 71 cents per share, calling for a 27.6% decline from the year-ago quarter’s levels. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decline of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 3. KO is likely to register top- and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The consensus estimate for earnings suggests 8.1% growth from the year-ago quarter’s reported number. KO has delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.