The Kroger Co. Earnings: Here’s Why Shares are Up Now

The Kroger Co. (NYSE:KR) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3%.

The Kroger Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.65% to $0.60 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Rose 4.58% to $22.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Kroger Co. reported adjusted EPS income of $0.60 per share. By that measure, the company met the mean analyst estimate of $0.60. It beat the average revenue estimate of $22.71 billion.

Quoting Management: “Kroger’s strong second quarter results have us on target to deliver the earnings per share growth we promised for the year,” said David B. Dillon, Kroger’s chairman and chief executive officer. “As we have shown quarter after quarter, our consistent execution of the Customer 1st Strategy deepens customer loyalty, increases sales and creates sustainable shareholder value.”

Key Stats (on next page)…

Revenue decreased 24.37% from $30.04 billion in the previous quarter. EPS decreased 34.78% from $0.92 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.52 to a profit $0.51. For the current year, the average estimate has moved up from a profit of $2.76 to a profit of $2.80 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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