Earnings preview: Investors cautious ahead of Kroger Q2 results

The Kroger Co. (KR) is scheduled to report second-quarter results before the opening bell on Thursday. The company will be depending on its robocars to lift orders partially in the second quarter and fully in the third quarter.

Analysts, on average, expect earnings of $0.37 per share for the second quarter, compared to a profit of $0.39 per share reported in the previous-year quarter. Topline is anticipated to rise 1.40% to $27.97 billion. Most analysts recommend a “hold” rating with an average price target of $30.68.

For the second quarter, investors expect the company to post a shortfall in revenue from last year, due to the lower forecast for identical supermarket sales. Growth estimates are likely to fall 5.10% for the second quarter, while it is anticipated to rise 4.50% for the next quarter.

For the recent first-quarter, the ongoing restock Kroger initiative helped post upbeat results. The results also benefited from strong cost controls and alternative revenue streams. Sales rose 3.4% and identical supermarket sales, without fuel, increased 1.4%.

For the full year 2018, the company had projected identical sales growth of 2-2.5%. Earnings were predicted to be in the range of $3.64 to $3.79 per share and adjusted earnings in the range of $2.00 to $2.15 per share.

Kroger had anticipated capital investments, excluding mergers, acquisitions, and purchases of leased facilities, to be about $3.0 billion for 2018.

Returning to second-quarter, investors are likely to focus on the company’s identical sales numbers. Traders might keen an eye on Kroger’s performance when compared with its rival retailers.

Shares of Kroger opened lower and remained grounded on Monday as investors remain concerned on the company’s future. The stock had risen by 51% for the past year and 16% so far this year.