Kroger Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Kroger (NYSE:KR) will unveil its latest earnings on Friday, September 7, 2012. Kroger is a retail chain operating food and drug stores, multi-department stores, jewelry stores, and convenience stores in the United States.

Kroger Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 49 cents per share, a rise of 19.5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 21.4% versus last year to $2.38.

Past Earnings Performance: Last quarter, the company reported net income of 78 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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A Look Back: In the first quarter, profit rose 56.2% to $439 million (78 cents a share) from $281 million (46 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 39% to $29.07 billion from $20.91 billion.

Wall St. Revenue Expectations: On average, analysts predict $21.94 billion in revenue this quarter, a rise of 4.9% from the year-ago quarter. Analysts are forecasting total revenue of $96.65 billion for the year, a rise of 6.9% from last year’s revenue of $90.37 billion.

Stock Price Performance: Between June 7, 2012 and August 31, 2012, the stock price rose 54 cents (2.5%), from $21.74 to $22.28. The stock price saw one of its best stretches over the last year between July 24, 2012 and August 1, 2012, when shares rose for seven straight days, increasing 5.2% (+$1.09) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 10.1% in the third quarter of the last fiscal year, 7.4% in the fourth quarter of the last fiscal year and 5.8% in the first quarter before increasing again in the first quarter.

Analyst Ratings: With nine analysts rating the stock as a buy, two rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.81 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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

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