Categories AlphaGraphs, Earnings

Kroger stock soars on Q1 earnings beat

Kroger (KR) reported better-than-expected results during Q1 2018, aided by its ongoing restock Kroger initiative. Total sales during the quarter rose 3.4% to $37.5 billion, beating the consensus estimate of $37.33 billion. Kroger reported net earnings of $2 billion, or $2.37 per share.

Excluding items, the company reported earnings of $0.73 per share, easily topping analysts estimate of $0.63 per share. Identical supermarket sales, without fuel, was 1.9% during the quarter.

During the pre-market hours, the company’s stock rose 7.52% to $28.15. Kroger, which recently entered into a deal with Ocado, expects identical sales growth, excluding fuel, to range from 2% to 2.5% in 2018.

Kroger Identical Supermarket sales trend

It raised the lower end of the EPS guidance to $3.64 – $3.79 from $3.59 – $3.79. Kroger also raised the bottom end of its adjusted earnings guidance to $2.00 – $2.15 per share for 2018, from $1.95 – $2.15 announced previously.

Related: Kroger invests in UK firm Ocado to boost digital business

“We are on track to generate the free cash flow and incremental FIFO operating profit that we committed to in Restock Kroger. We are confident in our ability to deliver on our plans for the year and our long-term vision to serve America through food inspiration and uplift,” said CEO Rodney McMullen.

Kroger has been aggressively investing in acquiring firms to strengthen its digital business. According to the recent deal with Ocado, Kroger will incorporate the UK retail giant’s technology into its grocery and food distribution business, along with 5% ownership in the company. This will help the Cincinnati-based retailer in fighting back against Amazon (AMZN).

Related: Kroger gobbles up Home Chef in second acquisition of the week

It also acquired a private meal-kit company Home Chef, thereby making its presence in the meal-kit market that is dominated by Blue Apron (APRN).

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top