NYSE$KLG

WK Kellogg Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

WK Kellogg Co reported a net sales decline of 2% and a net income increase of 83% compared to the previous year.

WK Kellogg Co's third quarter results showed a slight decline in net sales but a significant increase in net income. The company reaffirms its 2024 financial outlook, reflecting confidence in its strategy and financial position as a standalone entity.

  • Reaffirmed 2024 financial outlook, demonstrating confidence in future performance.
  • Year-to-date net sales growth of 5% driven by revenue growth management and recovery from disruptions.
  • Year-to-date net income reached $95 million, with a standalone adjusted EBITDA margin of 9.9%.
  • Strategic focus and operational flexibility as a standalone company expected to unlock profitable growth.

Headline financials

Total Revenue

$692M

Previous: $2.02B-65.7%
EPS (adj)

$0.49

Previous: $0.33+47.0%
Adjusted EBITDA Margin

7.5%

Previous: 4.4%+70.5%
Capital Expenditures

$33M

Previous: $38M-13.2%
Free Cash Flow

$11M

Previous: $15M-26.7%
Net Income

$42M

Previous: $23M+82.6%
Operating Income

$17M

Previous: $7M+142.9%
Gross Profit

$196M

Previous: $174M+12.6%
Cash & Equivalents

$64M

No prior period
Total Assets

$1.87B

No prior period
Stock-Based Comp

$1M

Previous: $2M-50.0%

Revenue & EPS history

Kellogg's · Revenue · Quarterly

$692M

Q3 2023-65.7%vs Q3 2022
Beat estimate in 2 of 7 quarters(29%)
ActualEstimate

Forward guidance

WK Kellogg Co is providing 2023 guidance slightly ahead of the outlook provided at Investor Day and is reaffirming the 2024 financial outlook. Adjusted Net Sales growth to be approximately flat versus 2023 Adjusted Net Sales.

Tailwinds

  • 2023 Standalone Adjusted Net Sales in the range of $2,720 million to $2,740 million
  • 2023 Standalone Adjusted EBITDA margin in the range of 9.1% to 9.2%
  • 2024 Adjusted EBITDA to be in the range of $255 million to $265 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 10 quarterly earnings reports

Historical avg

+0.3%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+8.2%

Avg return

30 days after

31%

4 / 13 earnings

Positive

+14.2%

Q4 2023

Best reaction

-6.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025-0.0%-0.8%-1.0%
Q1 2025+3.2%-2.1%-10.0%
Q4 2024+3.9%+21.3%+23.1%
Q3 2024+7.2%+4.2%+21.2%
Q2 2023-4.1%-2.0%+6.3%
Q2 2024-4.1%-2.0%+6.3%
Q1 2024-6.7%-5.7%-22.4%
Q1 2023-6.7%-5.7%-22.4%
Q1 2022+0.0%+8.7%+38.6%
Q4 2023+14.2%+20.0%+26.5%
Q4 2022-1.0%+1.9%+13.3%
Q3 2023-1.0%+1.9%+13.3%
Q3 2022-1.0%+1.9%+13.3%
Q2 2022

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro