WK Kellogg (KLG) Q2 Earnings and Revenues Miss Estimates

Group 1: Earnings Performance - WK Kellogg reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.28 per share, and down from $0.36 per share a year ago, representing an earnings surprise of -10.71% [1] - The company posted revenues of $613 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.31%, and down from $672 million year-over-year [2] - Over the last four quarters, WK Kellogg has surpassed consensus EPS estimates only two times and topped revenue estimates just once [2] Group 2: Stock Performance and Outlook - WK Kellogg shares have increased approximately 29% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [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 $0.28 on revenues of $669.55 million, and for the current fiscal year, it is $1.33 on revenues of $2.64 billion [7] Group 3: Industry Context - The Consumer Products - Staples industry, to which WK Kellogg belongs, is currently in the bottom 26% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact WK Kellogg's stock performance [5] - The unfavorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 5 (Strong Sell) for WK Kellogg, suggesting expected underperformance in the near future [6]