K Earnings Prediction
The chart below shows how K performed 10 days before and after its earnings report, based on data from the past quarters. Typically, K sees a -1.39% change in stock price 10 days leading up to the earnings, and a +2.87% change 10 days following the report. On the earnings day itself, the stock moves by +0.82%. This data can give you a slight idea of what to expect for the next quarter's release.
K Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.19B
-4.74%
-0.25%
Gross Margin
36.65%
12.25%
3.59%
Operating Margin
15.73%
26.45%
1.88%
Net Margin
10.87%
22.27%
28.34%
EPS
1.00
-2.91%
28.21%
No Data Available
K Earnings Analysis
Kellogg Company Corporation (K.N) Earnings Conference Call
Positive
Kellanova reported strong quarterly results with year-on-year organic growth in net sales on algorithm and sequential improvement in volume trends outside of Nigeria.
Quarterly organic net sales growth of 4%
Sequential improvement in volume for the fourth consecutive quarter outside of Nigeria
Currency-neutral operating profit growth on algorithm
Improvement in profit margins
Full commercial activity with innovation reaching shelves in the second quarter
Kellanova's differentiated footprint and return to full commercial activity contributed to continued sequential improvement in volume across most regions.
Improved volume performance in Europe, North America, and Latin America
Continuation of market share growth in key regions
Enhanced performance of Pringles and other key brands
Kellanova highlighted its robust innovation pipeline with launches across all regions showcasing a strong commitment to delight consumers and drive revenue growth.
New product innovations across regions
Reaching normal levels of net sales contribution from innovation launches
Increased focus on core brands like Pringles resulting in net sales growth
Year one incremental sales from innovation launches exceeding previous years
Kellanova's improved profit margins and strong financial performance led to an increase in full-year guidance, reflecting better-than-expected first half results and confidence in the second half outlook.
Operating profit margin target of over 14% in 2024
Strong financial position and solid commercial plans
Increased guidance for net sales, operating profit, and earnings per share
Improved free cash flow and debt leverage ratios
Kellanova's regional performance highlights growth opportunities and success across North America, Europe, Latin America, and EMEA, supported by strategic initiatives and investments.
Sequential volume improvement in North America
Sustainable volume growth in Latin America and Europe
Profit margin improvement and growth in key markets
Strong growth in snacks and cereal categories across regions
Kellanova remains committed to delivering shareholder value through its focused strategy, increased brand investment, innovation, and continuous improvement in profit margins, signaling a strong outlook for the company's future.
Strong commitment to driving shareholder value
Continuous investment in brand-building and innovation
Focus on profit margin expansion
Future growth potential in emerging markets and key categories.
Negative
- Volume declines in Nigeria are still a significant challenge, impacting overall performance in the region.
- Price/mix growth moderated outside of Nigeria, affecting net sales growth.
- Currency translation remains a significant headwind, leading to an 8% impact on net sales growth.
- Operating profit was affected by below-the-line items, although less than anticipated.
- Interest expenses increased due to higher interest rates, offsetting some growth in other income.
- Joint venture earnings and minority interests had a negative impact year-on-year.
- Despite improvements, net debt remains a concern, even with increased free cash flow.
- The second half is still uncertain, with challenges in commercial activity and market performance.
K FAQs
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K Earning Call Sentiment
Kellanova (K) Q2 2024 Earnings Call Transcript
1.0x
00:00
00:00
K.N
-0.15%Positive
The earnings call summary shows strong financial performance with significant growth in operating profit and EPS, improved margins, and reduced net debt. The company also expects continued growth in emerging markets and positive volume growth in North America and Europe. The Q&A session highlights management's confidence in their strategy and pricing, despite challenges in some regions. The lack of a share buyback program and unclear response regarding new product sales are minor negatives. Overall, the strong financial metrics and optimistic guidance suggest a positive stock price movement.
