By Connor Hart

WK Kellogg notched a decline in revenue in the fourth quarter, but shares gained after earnings came in higher than expected.

The Battle Creek, Mich.-based cereal maker on Tuesday reported a profit of $19 million, or 21 cents a share, for its quarter ended Dec. 28, compared with $15 million, or 18 cents a share, in last year's comparable frame.

Adjusted per-share earnings were 42 cents, beating the 25 cents that analysts polled by FactSet forecast.

Shares climbed 7.4%, to $17.51, in premarket trading.

Revenue fell 1.8% to $640 million. Analysts were looking for $644.9 million, according to FactSet.

The company said the decrease stemmed from an ongoing challenging business environment, as well as a weaker Canadian dollar in relation to the U.S. dollar. Price and product mix increased 3.8% during the quarter, while volumes fell 5.6%.

Chief Executive Gary Pilnick said he was pleased with the company's performance in 2024. "The team has done a great job executing on our plan, advancing our strategic priorities and building for the future, which gives us confidence in our ability to deliver on our 2025 commitments," he added.

In 2025, WK Kellogg expects organic net sales to fall approximately 1%. The company guided for adjusted earnings before interest, taxes, depreciation and amortization of $286 million to $292 million, representing a 4% to 6% increase from last year. Analysts surveyed by FactSet modeled adjusted Ebitda of $289 million, up 5.1% year-over-year.

The company's outlook doesn't include any impacts from President Donald Trump's potential tariffs with Mexico and Canada.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 11, 2025 08:26 ET (13:26 GMT)

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