Cereal Maker WK Kellogg Sticks To Annual Outlook Post Q1 Beat: Details
Portfolio Pulse from Shivani Kumaresan
WK Kellogg Co (NYSE:KLG) reported a slight sales decline in Q1 FY24 but exceeded analyst expectations with a 1.9% decrease to $707 million. Gross profit and operating income saw significant increases, with gross profit up 12.7% and operating income up 91.6%. Adjusted EBITDA rose by 8.7%, and EPS was $0.37, beating estimates. The company reaffirmed its FY24 outlook, expecting adjusted net sales growth of -1% to +1% and adjusted EBITDA growth of 3% to 5%. Despite the positive report, KLG shares dropped by 2.55% to $22.94.
May 07, 2024 | 3:57 pm
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WK Kellogg Co reported a strong Q1 FY24 performance with sales slightly down but beating estimates, significant increases in gross profit and operating income, and an EPS of $0.37. The company reaffirmed its FY24 outlook for adjusted net sales and EBITDA growth.
Despite WK Kellogg's strong Q1 performance and positive outlook for FY24, the immediate market reaction saw shares drop by 2.55%. This suggests that while the fundamentals are strong, market sentiment or external factors may be influencing the stock price negatively in the short term. The reaffirmation of the FY24 outlook indicates stability and confidence in the company's strategy, which could support a recovery or improvement in stock performance moving forward.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100