Retail

What to Expect When Kroger Reports Before the Opening Bell

Chris Lange

Published: December 4, 2019 3:22 pm

Last Updated: January 30, 2020 12:32 pm

The Kroger Co. (NYSE: KR) is set to report its most recent quarterly results before the opening bell on Thursday. The consensus estimates are calling for $0.48 in earnings per share (EPS) and $28.2 billion in revenue. The fiscal third quarter from last year had $0.48 in EPS and $27.67 billion in revenue.

In November, the grocery chain announced an update to its 2019 full-year guidance, as well as a business update. As part of this announcement, the board of directors has approved a $1 billion share repurchase program, replacing the existing authorization that has approximately $546 million remaining.

Kroger reconfirmed its 2019 guidance on identical sales, adjusted operating profit, EPS and alternative profit streams. The company also set financial targets for 2020.

For 2019, the company expects to see EPS in the range of $2.15 to $2.25, with an operating profit between $2.9 billion and $3.0 billion and identical sales growth of 2.0% to 2.25%. The consensus estimates are $2.19 in EPS and $122.51 billion in revenue for the year.

As for 2020, Kroger is looking for EPS in the range of $2.30 to $2.40 and identical sales growth, excluding fuel, to be greater than 2.25%. Consensus estimates call for $2.30 in EPS and $125.55 billion in revenue.

Overall, Kroger has underperformed the broad markets with the stock basically flat year over year. In the past 52 weeks, the stock is down closer to 8%.

A few analysts weighed in on Kroger ahead of the report:

• Wells Fargo has an Outperform rating with a $31 price target.
• Argus has a Buy rating.
• Deutsche Bank has a Hold rating with a $27 price target.
• Telsey Advisory Group has a Market Perform rating with a $29 price target.
• Oppenheimer has an Outperform rating with a $26 price target.
• Jefferies has a Hold rating with a $26 price target.

Shares of Kroger were last seen up less than 1% at $27.56, with a 52-week range of $20.70 to $30.40. The consensus analyst price target is $27.62.