WK Kellogg (NYSE:KLG) shares are trading higher on Thursday.
The company reported third-quarter adjusted earnings per share of 31 cents, beating the street view of 26 cents. Quarterly sales of $689 million outpaced the analyst consensus estimate of $674 million.
The company's reported net sales decreased 0.4% year-over-year, while adjusted net sales rose 0.7% compared to standalone adjusted net sales.
In the third quarter, price/mix increased 1.8%, while volume decreased 1.1%.
WK Kellogg's third quarter adjusted EBITDA grew 27.5% to $65 million year-over-year when compared to standalone adjusted EBITDA. The increase in adjusted EBITDA reflects improved top-line performance, continued operational discipline, and the timing of brand-building spend.
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"This quarter marks WK's first full year as an independent company, and we are making good progress executing our strategic priorities as we transform our business," said Gary Pilnick, Chairman and Chief Executive Officer.
Outlook: WK Kellogg Co is reaffirming its 2024 adjusted net sales growth guidance and raising its adjusted EBITDA growth forecast.
Adjusted net sales growth for 2024 is now expected to be at the lower end of the range, between -1.0% and 1.0%.
Adjusted EBITDA growth for 2024 is now projected to be between 5.0% and 6.0%, up from the previous range of 3.0% to 5.0%.
Price Action: KLG shares are trading higher by 10.4% to $18.60 premarket at last check Thursday.
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