Retail

What to Look for in Kroger Earnings

Chris Lange

Published: March 2, 2016 12:10 pm

Last Updated: January 13, 2020 12:27 pm

Kroger Co. (NYSE: KR) is set to release its fiscal fourth-quarter earnings report before the markets open on Thursday. The consensus estimates from Thomson Reuters call for $0.54 in earnings per share (EPS) on $26.28 billion in revenue. In the same period of last year, Kroger posted EPS of $0.52 and revenue of $25.24 billion.

In the previous earnings report, the company issued guidance for the fiscal-fourth quarter. Kroger expected identical supermarket sales growth, excluding fuel, of 4.0% to 4.5%. This implies an annual growth rate of roughly 5.00% to 5.25% for fiscal 2015. Separately, Kroger raised its EPS estimates for the fiscal full year to $2.02 to $2.04; the previous level was $1.92 to $1.98.

If Kroger hits these predictions, this will mark the 49th consecutive quarter of positive identical supermarket sales growth, excluding fuel.

Also management aims to continue its growth plan and expects to exceed its long-term earnings per diluted share growth rate in fiscal 2015.

A few analysts weighed in on Kroger prior to the earnings report:

• Oppenheimer reiterated an Outperform rating with a $47 price target.
• Stifel initiated coverage with a Buy rating and a $45 price target.
• Credit Suisse has a Neutral rating but lowered its price target to $36 from $40.
• BMO Capital Markets reiterated an Outperform rating with a $45 price target.

So far in 2016, Kroger has underperformed the broad markets, with the stock down 2.6% year to date. Over the past 52 weeks, the stock is actually up about 16%.

Shares of Kroger were trading flat at $40.61, with a consensus analyst price target of $44.34 and a 52-week trading range of $27.32 to $42.75.