MW WK Kellogg's profit crushes estimates but sales fall short in challenging market
By Ciara Linnane
Sales hit by declining volumes and the weak Canadian dollar
WK Kellogg Co.'s stock soared 4% early Tuesday, after the breakfast cereal company's fourth-quarter adjusted profit swept past estimates and offset a sales miss.
Battle Creek, Michigan-based Kellogg (KLG) had net income of $19 million, or 21 cents a share, for the quarter, up from $15 million, or 18 cents a share, in the year-earlier period. Adjusted for one-time items, it had EPS of 42 cents, well ahead of the 25-cent FactSet consensus.
Sales fell 1.8% to $640 million from $651 million, below the $645 million FactSet consensus.
The sales decline came as price/mix increased 3.8% and volume fell 5.6%. That was mostly due to the challenging business environment and the unfavorable impact of foreign exchange translation, notably the weakening of the Canadian dollar.
The higher net income was due to improved productivity and reduced waste within the company's supply chain operations, the company said in a statement.
The company is now expecting an organic sales decline of about 1% in 2025. Organic sales exclude the impact of currency and acquisitions. The guidance also excludes any potential impact from President Trump's planned tariffs on goods from Mexico and Canada.
The stock has gained 31.2% in the last 12 months, while the S&P 500 SPX has gained 20.7%.
-Ciara Linnane
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 11, 2025 08:27 ET (13:27 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。