Retail

What to Expect When Kroger Reports Thursday Morning

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The Kroger Co. (NYSE: KR) is scheduled to release its fiscal first-quarter financial results before the markets open on Thursday. The consensus estimates are calling for $0.72 in earnings per share (EPS) and $37.21 billion in revenue. The same period from last year had $0.73 in EPS and $37.53 billion in revenue.

In its fiscal fourth quarter, Kroger’s total sales decreased 9.5% year over year. Excluding fuel, the 53rd week in fiscal 2017, the divestiture of the convenience store business unit and the merger with the meal-kit company Home Chef, total sales increased 1.6% year over year.

One of the main highlights Kroger pointed to this quarter was that it grew digital sales by 58% year over year, achieving over $1 billion in cost savings. The firm also raised its dividend for the 12th consecutive year, an increase of 12%.

While Kroger got dragged for those results at the time, it still offers investment opportunity as one of a few companies that is shielded from a potential trade war with the likes of China.

Excluding Wednesday’s move in the stock price, Kroger has underperformed the broad markets with its stock actually down 13% year to date. In the past 52 weeks, the stock is down closer to 7.5%.

A few analysts weighed in on Kroger ahead of Thursday’s report:

  • BMO Capital Markets has a market perform rating with a $24 price target.
  • Merrill Lynch has a buy rating with a $30 price target.
  • Sanford Bernstein has an outperform rating with a $33 price target.
  • Scotiabank has a buy rating with a $32 price target.

Shares of Kroger were last seen down over 1% at $23.63, with a 52-week range of $22.44 to $32.74. The consensus analyst price target is $28.09.

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