:max_bytes(150000):strip_icc()/GettyImages-2153247552-540609cd2d024ffdb1565e7752cbb680.jpg "Pringles, Pop-Tarts Parent Kellanova Beats Estimates, Lifts Outlook")
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Key Takeaways
- Kellanova beats profit and sales estimates and boosts its guidance as volumes increase in North and Latin America.
- North American sales rose 0.7% year-over-year, and volumes grew 2.0%.
- Kellanova shares rose about 5% in intraday trading Thursday.
Shares of Pringles and Pop-Tarts parent Kellanova (K) rose in intraday trading Thursday as the cereal and snack food maker reported better-than-expected results and raised its guidance, boosted by North and Latin American demand.
The company formerly known as Kellogg, which split in two in October, posted second-quarter earnings per share (EPS) of $1.00, $0.11 above the average of analysts surveyed by Visible Alpha.
Revenue fell 4.7% year-over-year to $3.19 billion but it also exceeded forecasts. The company blamed the drop on “adverse currency translation and the 2023 divestiture of its business in Russia.” It added that organic revenue grew 4.0% and “remained within its long-term target range.”
North American sales gained 0.7%, “driven by a return to volume growth,” which increased 2.0%. Latin America sales and volume also advanced, but they fell in Europe and in the Asia Pacific, Middle East, and Africa region.
Kellanova Boosts FY Adjusted EPS Guidance
Kellanova explained that because of a stronger-than-expected first half, it was lifting its full-year adjusted EPS outlook to a range of $3.65 to $3.75, compared to the earlier $3.55 to $3.65. It sees organic revenue expanding by 3.5% or more, versus its previous prediction of a rise of at least 3%.
Shares of Kellanova rose almost 5% to $60.90 as of 2:20 p.m. ET Thursday and have added 9% year-to-date.