Kellanova (K) Q1 Earnings and Revenues Lag Estimates

Group 1: Earnings Performance - Kellanova reported quarterly earnings of $0.90 per share, missing the Zacks Consensus Estimate of $0.98 per share, and down from $1.01 per share a year ago, representing an earnings surprise of -8.16% [1] - The company posted revenues of $3.08 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.78%, and down from $3.2 billion year-over-year [2] - Over the last four quarters, Kellanova has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Kellanova shares have increased by about 2.2% since the beginning of the year, while the S&P 500 has declined by -5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.01 on revenues of $3.2 billion, and for the current fiscal year, it is $3.91 on revenues of $12.85 billion [7] Group 3: Industry Context - The Consumer Products - Discretionary industry, to which Kellanova belongs, is currently in the bottom 22% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Kellanova's stock performance [5] - The estimate revisions trend for Kellanova is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting it may underperform the market in the near future [6]