Lightspeed, Kellanova post quarterly beats: Trending Tickers
Shares of Lightspeed Commerce (LSPD) slipped despite strong third-quarter results that beat earnings expectations on both revenue and adjusted EPS. However, Lightspeed tempered its outlook, overshadowing positive quarterly figures.
Kellanova (K) — formerly Kellogg — beat fourth-quarter estimates on the top and bottom line, delivering adjusted EPS of $0.78 and sales of $1.37 billion. Additionally, Kellanova reaffirmed its full-year guidance, showcasing business momentum.
Yahoo Finance's Julie Hyman and Josh Lipton break down the details.
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Editor's note: This article was written by Angel Smith
Video Transcript
JULIE HYMAN: Lightspeed, it did top estimates on the top and bottom line in the third quarter but delivered a cautious macro outlook that seems to be responsible for that big drop of 24%. This company based in Canada, it's a point of sale company, caters to restaurants as well as golf courses and small businesses here. And so it's interesting that we are seeing this large reaction to these numbers.
JOSH LIPTON: Yeah. The caution was in part on that macro backdrop. And just looking through some of the analyst notes today, Stifel for example, told their clients they see macro risk for this name as the-- as a key headwind in the near term. And that in part is why they would tell their clients that they're on the sidelines for now.
JULIE HYMAN: And Wells Fargo looking at gross transaction volume that appears sluggish, which they say raises some skepticism about the shares as well.
JOSH LIPTON: All right, final name here. Let's check out Kellanova, formerly known as Kellogg, topping analyst estimates on the top and bottom line as price increases offsets elasticity on volume. You can see the shares popping about more than 2% there in today's trade. So the packaged foods company Q4 adjusted EPS, Julie, $0.78. That was a beat. Sales 3.17 billion. That was also a beat, did affirm annual guidance as well.
JULIE HYMAN: Yeah. And that seems to be key as well. You know, it's so-- expectations-- the expectations game is so important. We've been talking about some names in recent days that reaffirm their guidance, and that's a disappointment. In this case, they reaffirmed the guidance, and it was reassuring here. Remember Kellanova spun off that North American cereal business. And some analysts are saying that this quarter seems like a bit of a confirmation that that was the right thing to do here. And organic growth in particular, it's interesting to see that return for some companies like Kellanova.
JOSH LIPTON: Yup.
