KLG Earnings Prediction
The chart below shows how KLG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KLG sees a -2.45% change in stock price 10 days leading up to the earnings, and a +3.20% change 10 days following the report. On the earnings day itself, the stock moves by +2.09%. This data can give you a slight idea of what to expect for the next quarter's release.
KLG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
689.00M
-0.43%
2.53%
Gross Margin
29.03%
5.72%
-2.94%
Operating Margin
5.37%
6.13%
-30.62%
Net Margin
-1.60%
-126.36%
-134.71%
EPS
-0.13
-126.53%
-137.14%
No Data Available
KLG Earnings Analysis
WK Kellogg Co Corporation (KLG.N) Earnings Conference Call
Positive
Gross Margin Improvement: 1. Gross Margin Expansion: Achieved a gross margin of 29.4%, a 90 basis point increase compared to the prior year, reflecting continued cost discipline and operational efficiency improvements.
EBITDA Increase Analysis: 2. EBITDA Growth: EBITDA for Q3 was $65 million, representing a 27.5% increase year-over-year, driven by top line performance and operational discipline.
Sales Growth Analysis: 3. Sales Improvement: Net sales increased by 0.7% to $689 million in Q3, supported by a balance of improving volume and price realization, with a notable 1.8% price realization contributing to growth.
Market Share Performance: 4. Market Share Gains: Maintained a market share of 27.6% in the U.S. cereal category, with five of the Core 6 brands growing or maintaining share, indicating strong brand performance during the back-to-school period.
Cash Flow and Dividends: 5. Positive Cash Flow and Dividends: Year-to-date cash flow from operations was $98 million, and the company paid $41 million in dividends to shareholders, demonstrating strong financial health and commitment to returning value to investors.
Negative
Sales Decline Analysis: 1. Declining Year-to-Date Sales: Year-to-date net sales decreased by 0.9% compared to the prior year period, indicating a challenging sales environment.
Sales Volume Decrease: 2. Volume Decline: In Q3, net sales growth was primarily driven by a price realization of 1.8%, while volume declined by 1.1%, reflecting ongoing consumer challenges.
Negative Cash Flow Outlook: 3. Negative Cash Flow Projection: The company expects free cash flow for 2024 to be approximately negative $50 million, indicating potential liquidity issues ahead.
Leverage Ratio Concerns: 4. High Leverage Ratio: The leverage ratio, measured by net debt to trailing 12-month EBITDA, is currently at 1.6 times, with expectations to peak at approximately 3 times in 2026, raising concerns about financial stability.
Brand Performance Challenges: 5. Special K Brand Struggles: Special K continues to underperform, down 40 basis points in market share, highlighting ongoing challenges in revitalizing this key brand.
KLG FAQs
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KLG Earning Call Sentiment
WK Kellogg Co (KLG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
KLG.N
5.6%Positive
The earnings call presents mixed signals: a positive EBITDA guidance raise and operational efficiency improvements contrast with negative free cash flow expectations and competitive pressures. The Q&A session reveals management's optimism but also highlights uncertainties, particularly in competitive dynamics and inflation. The lack of a share buyback plan and minimal dividend payments suggest limited shareholder returns. Given the market cap of $1.45 billion, the stock's reaction is likely muted, resulting in a neutral sentiment prediction.
