Kellanova’s stock climbs after earnings beat, as higher prices offset a drop in volume for the snacks and cereal company

Shares of Kellanova
K,
-1.36%,
formerly known as Kellogg, climbed 2% ahead of Thursday’s open, as the snacks and cereal company, with brands including Pop-Tarts, Cheez-It and Special K, beat fourth-quarter earnings expectations, as price increases offset a decline in volume and the divestiture of its business in Russia. The company swung to net income of $27 million, or 8 cents a share, from a loss of $99 million, or 29 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 78 cents topped the FactSet consensus of 74 cents. Sales edged up 0.3% to $3.17 billion, above the FactSet consensus of $3.07 billion. The quarter was kicked off by the spin off of WK Kellogg Co.
KLG,
-3.87%
on Oct. 2. “To execute the spin-off while delivering solid results amidst challenging industry conditions is a testament to the dedication and focus of our employees,” said Kellanova Chief Executive Steve Cahillane. The stock has tacked on 3.3% over the past three months through Wednesday, while the S&P 500
SPX,
+0.82%
has advanced 14%.