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WK Kellogg (KLG) Tops Q4 Earnings Estimates
KLGWK Kellogg Co(KLG) ZACKS·2025-02-11 15:10

Core Viewpoint - WK Kellogg reported quarterly earnings of 0.42pershare,significantlyexceedingtheZacksConsensusEstimateof0.42 per share, significantly exceeding the Zacks Consensus Estimate of 0.25 per share, marking a 68% earnings surprise compared to 0.18pershareayearago[1]−Thecompanypostedrevenuesof0.18 per share a year ago [1] - The company posted revenues of 640 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.45% and down from 651millionyear−over−year[2]Group1:EarningsPerformance−WKKellogg′searningsof651 million year-over-year [2] Group 1: Earnings Performance - WK Kellogg's earnings of 0.42 per share represent a 68% surprise over the expected 0.25pershare,andayear−over−yearincreasefrom0.25 per share, and a year-over-year increase from 0.18 per share [1] - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - A quarter ago, WK Kellogg reported earnings of 0.31pershareagainstanexpectationof0.31 per share against an expectation of 0.26, resulting in a surprise of 19.23% [1] Group 2: Revenue Insights - The reported revenue of 640millionforthelatestquarterfellshortoftheZacksConsensusEstimateanddecreasedfrom640 million for the latest quarter fell short of the Zacks Consensus Estimate and decreased from 651 million in the same quarter last year [2] - WK Kellogg has topped consensus revenue estimates two times over the last four quarters [2] Group 3: Stock Performance and Outlook - WK Kellogg shares have declined approximately 9.3% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is 0.38,withexpectedrevenuesof0.38, with expected revenues of 693.66 million, and for the current fiscal year, the estimate is 1.43on1.43 on 2.69 billion in revenues [7] Group 4: Industry Context - The Consumer Products - Staples industry, to which WK Kellogg belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact WK Kellogg's stock performance [5]