Why WK Kellogg Shares Are Rising Tuesday
Portfolio Pulse from Nabaparna Bhattacharya
WK Kellogg Co (NYSE:KLG) shares rose after reporting Q4 net sales of $651 million, surpassing estimates but with a 3.7% YoY decline. Earnings per share were 18 cents, below the 21 cents consensus. However, net income increased by 109.9% YoY, and adjusted EBITDA grew by 43.2%. The company raised its adjusted EBITDA guidance for the upcoming period and projected 2024 adjusted net sales growth between -1.0% and 1.0%, with EBITDA growth of 3% to 5%. Shares surged 12.2% to $14.15.
February 13, 2024 | 3:50 pm
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WK Kellogg Co reported higher than expected Q4 net sales but missed EPS estimates. Despite a YoY sales decline, significant growth in net income and adjusted EBITDA was observed. The company also raised its future EBITDA guidance, positively impacting investor sentiment.
The positive reaction in WK Kellogg's stock price is attributed to the company's better-than-expected net sales and the significant year-over-year growth in net income and adjusted EBITDA. The upward revision of the EBITDA guidance further boosts investor confidence, suggesting a strong operational performance and financial health. Despite missing EPS estimates, the overall financial improvements and optimistic future projections have led to a bullish short-term outlook for KLG shares.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100