Kellanova K is likely to register a top-and-bottom line decline when it reports third-quarter 2024 earnings on Oct. 31. The Zacks Consensus Estimate for revenues is pegged at $3.2 billion, suggesting a fall of almost 20% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 85 cents per share. The projection indicates a decline of 17.5% from the figure reported in the year-ago period quarter. Kellanova, which formerly operated as Kellogg Company, has a trailing four-quarter earnings surprise of 12.4%, on average.

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Things to Consider About K’s Upcoming Results

Kellanova has been bearing the brunt of economic challenges as underlying inflationary pressures are impacting consumer purchasing behavior. In addition, rising input costs are putting pressure on the company's profitability. The company is facing headwinds from industry-wide elasticities, which is denting consumer demand in key categories such as snacks and cereals. Kellanova’s international presence also keeps it exposed to risks of unfavorable currency translations. The persistence of these factors is likely to have hurt the company’s performance in the to-be-reported quarter.

Despite these challenges, Kellanova is mitigating some impacts with robust product innovations and an expansion focus on key brands. The company is also strategically focusing on cost-saving initiatives to enhance profitability and operational efficiency. The persistence of these upsides is likely to have offered some respite in the third quarter.

Kellanova Price, Consensus and EPS Surprise

Kellanova price-consensus-eps-surprise-chart | Kellanova Quote

Earnings Whispers for Kellanova

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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kellanova carries a Zacks Rank #2 and has an Earnings ESP of 0.00%.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these, too, have the correct combination to beat on earnings this time around.

US Foods Holding Corp. USFD currently has an Earnings ESP of +0.69% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports third-quarter 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of 82 cents suggests a rise of 17.1% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

US Foods Holding’s top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $9.7 billion, indicating an increase of 6.6% from the figure reported in the year-ago quarter.

Mondelez International MDLZ has an Earnings ESP of +0.82% and a Zacks Rank of 3 at present. MDLZ is likely to register top-and-bottom line growth when it releases second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.1 billion, implying a rise of 0.5% from that reported in the year-ago quarter.

The consensus estimate for Mondelez’s quarterly earnings has been unchanged in the past 30 days at 84 cents per share, indicating growth of 2.4% from the year-ago quarter’s reported number. MDLZ has a trailing four-quarter average earnings surprise of 7.8%.

Performance Food Group Company PFGC currently has an Earnings ESP of +0.33% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at $1.22, up 6.1% year over year. 

Performance Food’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.3 billion, which indicates an increase of 2.7% from the figure reported in the prior-year quarter. PFGC has a trailing four-quarter earnings surprise of 1.3%, on average.