Kroger Co. (NYSE: KR) reported its fiscal third-quarter financial results before the opening bell Thursday. The grocery chain said that it had $0.47 in earnings per share (EPS) and $28.0 billion in revenue, while consensus estimates had called for $0.49 in EPS and $28.18 billion in revenue. The same period of last year reportedly had $0.48 in EPS and $27.67 billion in revenue.
During the most recent quarter, identical sales without fuel grew 2.5% year over year and digital sales grew 21%.
The company expanded its footprint to 1,915 pickup locations and 2,326 delivery locations, covering over 96% of Kroger households.
Looking ahead to the 2020 fiscal full year, the company expects to see EPS in the range of $2.15 to $2.25, with identical sales increasing in the range of 2.00% to 2.25%. Consensus estimates are calling for $2.20 in EPS and $122.55 billion in revenue for the year.
Consistent with its financial strategy, Kroger reduced net total debt by $1.5 billion over the past four quarters. Kroger’s net total debt to adjusted EBITDA ratio is 2.50, compared to 2.72 a year ago. The company’s net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50.
Rodney McMullen, board chair and CEO, commented:
Kroger’s customer obsession and focus on operational excellence continued to generate positive results in the third quarter. Identical sales were the strongest since we started Restock Kroger and gross margin rate, excluding fuel and pharmacy, improved slightly in the quarter. At the same time, we continued to reduce costs as a percentage of sales.
Shares of Kroger traded down about 2% to $27.06 Thursday morning, in a 52-week range of $20.70 to $30.40. The consensus price target is $27.62.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.