What to Expect From Kroger Earnings

By Chris Lange Updated Jan 13, 6:47AM EST · Published Jun 15, 10:15AM EDT

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What to Expect From Kroger Earnings — © Thinkstock

Kroger Co. (NYSE: KR) is scheduled to report its fiscal second-quarter financial results before the markets open on Thursday. The consensus estimates call for $0.69 in earnings per share (EPS) on $34.88 billion in revenue. In the same period of last year, the retailer posted EPS of $0.63 and $33.05 billion in revenue.

This company has been a leading grocery store chain in America for years now. Last fall, Kroger announced that it will get a tad larger by acquiring Roundy’s. The size of the acquisition is said to be some $800 million, but that is after the assumption of debt.

In the most recent earnings report, Kroger kept its streak alive and posted its 49th consecutive quarter of positive identical supermarket sales growth, excluding fuel. During the fourth quarter, total sales excluding fuel increased 6.5% year over year, and including fuel it increased 3.8%. With oil prices rising, we might expect an even more positive quarter out of Kroger.

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Also in the past report, Kroger delivered on its performance targets, grew market share, created 9,000 new jobs, supported communities and continued to expand its use of technology to drive growth.

Management believes that the company is not done yet. In 2016, Kroger expects to continue making a difference for customers and associates, growing its business and delivering value for shareholders.

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

RBC Capital reiterated a Sector Perform rating with a $39 price target.
Oppenheimer reiterated a Buy rating with a $42 price target.
Jefferies reiterated a Hold rating.
Credit Suisse has a Neutral rating and lowered its price target to $34 from $36.

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So far in 2016, Kroger has underperformed the broad markets, with the stock down 14%. Over the past 52 weeks, the stock is relatively flat.

Shares of Kroger were trading down 0.9% at $35.43 Wednesday morning, with a consensus analyst price target of $41.91 and a 52-week trading range of $27.32 to $42.75.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.