Kroger Earnings: Rise in Profit

S&P 500 (NYSE:SPY) component Kroger Co. (NYSE:KR) reported net income above Wall Street’s expectations for the fourth quarter. Kroger is a retail chain operating food and drug stores, multi-department stores, jewelry stores, and convenience stores in the United States.

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Kroger Co. Earnings Cheat Sheet

Results: Net income for Kroger Co. rose to $316.5 million (60 cents per share) vs. $279 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 13.4% from the year-earlier quarter.

Revenue: Rose 5.9% to $21.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kroger Co. reported adjusted net income of 46 cents per share. By that measure, the company beat the mean estimate of 43 cents per share. It fell short of the average revenue estimate of $29.13 billion.

Quoting Management: “Kroger achieved our growth objectives for the quarter, including positive identical supermarket sales, operating profit growth and outstanding tonnage growth,” said David B. Dillon, Kroger’s chairman and chief executive officer. “This quarter illustrates that the strength of our core business positions Kroger to accelerate our earnings per share growth.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the third quarter, by 6 cents in the third quarter, and by one cent in the third quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 67 cents a share to 68 cents over the last ninety days. The average estimate for the fiscal year is $2.41 per share, a rise from $2.38 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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