Why WK Kellogg Shares Are Rising Tuesday

WK Kellogg Co KLG shares are trading higher on Tuesday.

The company reported fourth-quarter net sales of $651 million, beating the street view of $645.87 million. Revenue fell 3.7% year over year.

The decline in net sales performance in the fourth quarter was due to price elasticities and lower promotional spending.

For the fourth quarter, price/mix increased 7.5%, and volume was down 10.1%.

The company reported earnings per share of 18 cents, missing the consensus of 21 cents. 

The fourth quarter’s reported net income was $15 million, a 109.9% increase year-over-year.

Quarterly standalone adjusted EBITDA was $53 million, a 43.2% increase year-over-year. These increases reflect the benefits of revenue growth management initiatives and operational cost discipline.

Outlook: WK Kellogg raised adjusted EBITDA guidance in the range of $265 million-$270 million (prior outlook: $255 million-$265 million) 

The company’s 2024 adjusted net sales growth is projected to be (1.0)% to 1.0%. The company now sees 2024 adjusted EBITDA growth of 3% to 5%.

Price Action: KLG shares are trading higher by 12.2% to $14.15 on the last check Tuesday.