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Investing.com - WK Kellogg (NYSE:K) Co reported fourth-quarter earnings on Tuesday that surpassed analyst expectations, sending its stock up 3.92% in response.
The cereal maker posted adjusted earnings per share of $0.42 for Q4, beating the analyst consensus of $0.23 by $0.19. Revenue came in at $640 million, slightly below estimates of $647.86 million and down 1.8% YoY.
For the full year 2024, WK Kellogg reported net sales of $2.708 billion, a 2% decrease from the previous year. The company cited ongoing challenging business conditions for the revenue decline.
"I am pleased with our overall 2024 financial results, including delivering adjusted EBITDA growth above the top end of our guidance range," said Gary Pilnick, Chairman and CEO.
Despite lower sales, WK Kellogg improved profitability. Q4 adjusted EBITDA rose 7.5% YoY to $57 million, while full-year adjusted EBITDA increased 6.6% to $275 million compared to standalone adjusted EBITDA in 2023.
The company attributed the gains to improved productivity and reduced waste in its supply chain.
Looking ahead, WK Kellogg projects approximately -1% organic net sales growth for 2025. However, it expects adjusted EBITDA to grow 4% to 6%.
The positive earnings surprise and outlook for continued profit growth appeared to outweigh concerns about declining sales, as reflected in the stock’s upward move following the report.
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