WK Kellogg (NYSE:KLG) Announces Quarterly Earnings Results

Key Points

• WK Kellogg reported $0.25 earnings per share for the quarter, missing estimates by $0.03, with revenues down 8.8% year-over-year at $611.52 million.
• The company's quarterly dividend of $0.165 per share, representing an annual yield of 2.9%, is set to be paid to investors of record.
• WK Kellogg has seen recent upgrades in target prices from multiple analysts, now averaging at $20.57 with a consensus rating of "Hold."

WK Kellogg (NYSE:KLG - Get Free Report) issued its earnings results on Thursday. The company reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.03), Zacks reports. The company had revenue of $611.52 million for the quarter, compared to analyst estimates of $653.36 million. WK Kellogg had a return on equity of 32.57% and a net margin of 1.31%. The company's revenue for the quarter was down 8.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.36 earnings per share.

WK Kellogg Trading Down 0.5%

KLG traded down $0.12 during trading hours on Friday, reaching $23.08. The company's stock had a trading volume of 1,089,147 shares, compared to its average volume of 1,549,011. WK Kellogg has a fifty-two week low of $14.80 and a fifty-two week high of $23.56. The stock has a market cap of $1.99 billion, a PE ratio of 62.38 and a beta of 0.24. The business's 50-day moving average is $19.24 and its 200-day moving average is $18.73. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.78 and a quick ratio of 0.34.

WK Kellogg Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 29th will be issued a $0.165 dividend. The ex-dividend date is Friday, August 29th. This represents a $0.66 dividend on an annualized basis and a yield of 2.9%. WK Kellogg's dividend payout ratio is currently 178.38%.

Analyst Upgrades and Downgrades

KLG has been the topic of several recent research reports. Evercore ISI boosted their target price on WK Kellogg from $19.00 to $23.00 and gave the stock an "in-line" rating in a report on Friday, July 11th. Barclays restated an "underweight" rating and set a $23.00 target price (up from $16.00) on shares of WK Kellogg in a report on Monday, July 14th. Cowen upgraded WK Kellogg from a "sell" rating to a "hold" rating in a report on Friday, July 11th. TD Cowen upgraded WK Kellogg from a "sell" rating to a "hold" rating and boosted their target price for the stock from $14.00 to $23.00 in a report on Monday, July 14th. Finally, Wall Street Zen upgraded WK Kellogg from a "sell" rating to a "hold" rating in a report on Sunday, July 13th. Two investment analysts have rated the stock with a sell rating and seven have issued a hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $20.57.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of WK Kellogg by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 38,997 shares of the company's stock worth $777,000 after acquiring an additional 1,659 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of WK Kellogg by 5.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 145,640 shares of the company's stock worth $2,903,000 after acquiring an additional 7,830 shares during the period. Finally, Jones Financial Companies Lllp increased its position in shares of WK Kellogg by 150.3% during the first quarter. Jones Financial Companies Lllp now owns 19,559 shares of the company's stock worth $390,000 after acquiring an additional 11,746 shares during the period. 95.74% of the stock is currently owned by institutional investors and hedge funds.

About WK Kellogg

WK Kellogg Co operates as a food company in the United States, Canada, and the Caribbean. It manufactures, markets, and distributes ready-to-eat cereal products primarily under the Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, and Kashi brands. The company was formerly known as North America Cereal Co and changed its name to WK Kellogg Co in March 2023.

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