WK Kellogg revenue beats analyst estimates

By Steve Gelsi

Cereal giant says margins grew wider

WK Kellogg Co. said its first-quarter profit rose by about 38%, while revenue beat the analyst estimates, but its stock cooled off after gains in recent weeks.

WK Kellogg (KLG) said its profit increased to $33 million, or 37 cents a share, from $24 million, or 28 cents a share, in the year-ago quarter.

The Battle Creek, Mich.-based food giant matched the FactSet consensus estimate of 37 cents a share.

Revenue fell by 1.9% to $707 million, beating the analyst estimate of $697.8 million.

The company's reported net income margin rose to 4.7% from 3.3%.

WK Kellogg continues to expect 2024 adjusted net sales growth of negative 1% to positive 1%.

WK Kellogg's stock fell 1.1% on Tuesday, giving back some of its recent gains including a 15.6% rise in the past month.

WK Kellogg's stock is up 79% so far in 2024, compared to an 8.6% gain in the S&P 500 .

In October, the former Kellogg Co. separated its North American cereal business through a tax-free spin-off of WK Kellogg Co. to its shareholders.

It also spun off snack food specialist Kellanova (K), which reported its latest quarterly results last week.

-Steve Gelsi

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05-07-24 1025ET

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