Shareholders will be ecstatic, with their stake up 21% over the past week following WK Kellogg Co's (NYSE:KLG) latest yearly results. Revenues were in line with forecasts, at US$2.8b, although statutory earnings per share came in 11% below what the analysts expected, at US$1.28 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for WK Kellogg Co

Following last week's earnings report, WK Kellogg Co's ten analysts are forecasting 2024 revenues to be US$2.71b, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 12% to US$1.44. In the lead-up to this report, the analysts had been modelling revenues of US$2.71b and earnings per share (EPS) of US$1.36 in 2024. So the consensus seems to have become somewhat more optimistic on WK Kellogg Co's earnings potential following these results.

There's been no major changes to the consensus price target of US$14.63, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values WK Kellogg Co at US$27.00 per share, while the most bearish prices it at US$11.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2024. This indicates a significant reduction from annual growth of 0.7% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - WK Kellogg Co is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around WK Kellogg Co's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that WK Kellogg Co's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for WK Kellogg Co going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for WK Kellogg Co that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.