WK Kellogg Co KLG is likely to register bottom-line growth when it reports fourth-quarter 2024 earnings on Feb. 11. The consensus mark for earnings has dipped by a penny in the past 30 days to 25 cents per share, which suggests an increase of 38.9% from the figure reported in the year-ago quarter. KLG has a trailing four-quarter negative earnings surprise of 2.3%, on average.

The Zacks Consensus Estimate for revenues is pegged at $642.9 million, indicating a 1.2% decline from the prior-year quarter’s reported figure.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

KLG: Key Factors to Watch

WK Kellogg has been benefiting from its strong portfolio of brands, focus on innovation and supply-chain enhancements. The company continues to focus on strengthening its Core 6 brands, which represent approximately 70% of total sales. Key brands like Frosted Flakes and Raisin Bran are among the fastest-growing in the cereal category, benefiting from strong brand positioning and targeted marketing.

KLG has made significant strides in stabilizing its supply chain, which faced disruptions in 2023. Improved customer service levels and operational efficiency have allowed retailers to maintain normal inventory levels, positively impacting shipments. Focus on channel diversification, such as e-commerce and foodservice, has also been working well. These upsides are likely to have aided performance in the fourth quarter.  

However, the U.S. cereal category remains under pressure. On its last earnings call, the company also noted that fourth-quarter sales could be seasonally lower as retailers prioritize general merchandise over food categories for the holiday season. Apart from this, cost inflation has been a concern, though strategic pricing is likely to have provided resilience.

Earnings Whispers for KLG Stock

Our proven model predicts an earnings beat for WK Kellogg this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. 

WK Kellogg carries a Zacks Rank #3 and has an Earnings ESP of +14.85%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

US Foods Holding Corp. USFD currently has an Earnings ESP of +2.68% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for US Foods Holding’s quarterly revenues is pegged at $9.47 billion, which suggests 6% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for US Foods Holding’s quarterly earnings per share is pegged at 80 cents, indicating a 25% increase from the year-ago period. USFD delivered an earnings surprise of 3.7% in the last reported quarter.

The Coca-Cola Company KO currently has an Earnings ESP of +0.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.69 billion, which indicates a decrease of 1.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coca-Cola’s fourth-quarter 2024 EPS is pegged at 51 cents, which implies a 4.1% increase year over year. KO has a trailing four-quarter earnings surprise of 3.9%, on average. 

Kellanova K currently has an Earnings ESP of +0.69% and a Zacks Rank of 3. The company is likely to register bottom-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for Kellanova’s quarterly earnings per share is pegged at 82 cents, indicating 5.1% growth from the year-ago period. K has a trailing four-quarter earnings surprise of 10.9%, on average.

The Zacks Consensus Estimate for Kellanova’s quarterly revenues is pegged at $3.09 billion, which suggests a decrease of 2.6% from the prior-year quarter.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CocaCola Company (The) (KO) : Free Stock Analysis Report

Kellanova (K) : Free Stock Analysis Report

US Foods Holding Corp. (USFD) : Free Stock Analysis Report

WK Kellogg Co. (KLG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research