WK Kellogg Co (NYSE:KLG) is expected to report a significant 38.9% increase in EPS compared to the same quarter last year, despite a slight decline in revenue estimates.
The company’s strong brand portfolio and focus on innovation, along with supply-chain improvements, are anticipated to offset challenges such as cost inflation.
KLG’s financial metrics reveal a P/E ratio of 20.84, a debt-to-equity ratio of 1.87, and an earnings yield of 4.80%, highlighting its market valuation and financial health.
WK Kellogg Co (NYSE:KLG) is a well-known player in the food industry, recognized for its strong brand portfolio and focus on innovation. As KLG prepares to release its fourth-quarter 2024 earnings on February 11, 2025, Wall Street estimates earnings per share (EPS) to be $0.28, with projected revenue of approximately $645.1 million.
Analysts expect KLG to demonstrate bottom-line growth, despite a recent dip in the consensus earnings estimate to $0.25 per share. This revised estimate still represents a significant 38.9% increase compared to the same quarter last year. However, the revenue estimate of $642.9 million marks a 1.2% decline from the previous year’s quarter, as highlighted by analysts.
KLG has faced an average negative earnings surprise of 2.3% over the last four quarters. Despite this, the company is expected to benefit from its strong brand portfolio, innovation focus, and supply-chain improvements. These factors may help offset challenges posed by cost inflation, potentially impacting the upcoming earnings report.
KLG’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 20.84, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is 0.52, suggesting that investors are paying 52 cents for every dollar of sales, while the enterprise value to sales ratio is 0.72.
The company’s debt-to-equity ratio is 1.87, indicating a significant reliance on debt compared to equity. Additionally, the current ratio of 0.78 suggests potential challenges in covering short-term liabilities with short-term assets. Despite these challenges, KLG’s earnings yield of 4.80% reflects the percentage of each dollar invested that was earned by the company.