Kroger Not Held Down by Mixed Q1 Earnings

By Chris Lange Updated Jan 13, 6:44AM EST · Published Jun 16, 9:55AM EDT

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Kroger Not Held Down by Mixed Q1 Earnings — © Thinkstock

Kroger Co. (NYSE: KR) reported its fiscal first-quarter financial results before the markets opened on Thursday. The company said that it had $0.70 in earnings per share (EPS) on $34.6 billion in revenue. Consensus estimates from Thomson Reuters called for $0.69 in EPS on revenue of $34.88 billion. In the same period of last year, the retailer posted EPS of $0.63 and $33.05 billion in revenue.

For this quarter, total sales increased 4.7% while total sales, excluding fuel, increased 7.8% in the first quarter, compared to the same period last year. Total sales, excluding fuel and Roundy’s, increased 3.5% in the first quarter compared to the same period last year.

In terms of guidance for this fiscal year, the company expects to have EPS in the range of $2.19 to $2.28 with its identical supermarket sales growth guidance, excluding fuel, of approximately 2.5% to 3.5%. The consensus forecast is $2.25 EPS on $116.78 billion in revenue.

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On the books, Kroger cash and cash equivalents totaled $391 million at the end of the quarter, versus $252 million at the end of the same period from last year.

Rodney McMullen, chairman and CEO of Kroger, commented on earnings:

We are very pleased with a solid quarter during which we continued to strengthen our connection with customers and expand our ClickList offering to more customers in more markets. Fifty consecutive quarters of positive identical supermarket sales growth, excluding fuel, is extraordinary. Our associates work tirelessly to produce these consistently remarkable results. We’ve been through all kinds of business cycles during the last 50 quarters, and we’ve demonstrated time and again that regardless of the environment, you can count on Kroger to continue executing our strategy, investing in growth and creating value for our customers and shareholders.

Shares of Kroger were up 2.8% to $36.71 just after Thursday’s opening bell, with a consensus analyst price target of $41.91 and a 52-week trading range of $27.32 to $42.75.

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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.