What to Expect From Kroger Earnings

Retail

Published: June 17, 2015 1:55 pm

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Kroger Co. (NYSE: KR) is set to report its fiscal first-quarter earnings Thursday before the markets open. The consensus estimates from Thomson Reuters call for $1.22 in earnings per share (EPS) on $33.34 billion in revenue. In the same quarter of the previous year, Kroger posted EPS of $1.09 and revenue of $32.96 billion.

The company operates 782 convenience stores, 326 fine jewelry stores, 1,330 supermarket fuel centers and 37 food processing plants in the United States.

Kroger had a monster 2014, up 64%, and the question for investors is can the supermarket giant continue its winning ways. Kroger is one of the world’s largest retailers, employing nearly 400,000 associates in 2,625 supermarkets and multi-department stores in 34 states and the District of Columbia, under two dozen local banners, including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s.

In its most recent earnings report, Kroger issued guidance for the 2015 full year. The company anticipated same-store sales growth, excluding fuel, of approximately 3.0% to 4.0%. Also, net earnings for 2015 were expected to range from $3.80 to $3.90 per diluted share. The consensus estimates are $3.87 in EPS and $110.90 billion in revenue.

Considering this guidance, Kroger hopes to keep its current streak alive. Last quarter marked the 45th consecutive quarter of positive same-store sales growth, not including fuel sales.

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A few analysts weighed in on Kroger prior to its earnings:

BMO Capital Markets reiterated an Outperform rating.
Macquarie initiated coverage with a Neutral rating and a $65 price target.
Oppenheimer reiterated an Outperform rating with an $80 price target.

Shares of Kroger were up 0.2% at $72.50 Wednesday afternoon. The stock has a consensus analyst price target of $80.83 and a 52-week trading range of $46.77 to $77.74.

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