The Kroger Co. (KR, Financial) will report its third-quarter results before the market opens Nov. 30.
For the quarter, the average analyst forecasts Kroger will post earnings per share of 40 cents, which represents a 2.4% decrease on a year-over-year basis. Analyst estimates range between a low of 35 cents and a high of 43 cents.
Source: Yahoo Finance
Revenue is expected to come in at $27.49 billion on average, as illustrated in the chart below. This represents a 3.40% increase from the prior-year quarter.
Source: Yahoo Finance
Fifteen analysts were surveyed in regard to revenue. Estimates range between a low of $27.22 billion and a high of $28.07 billion.
As of the most recent quarter, Kroger has approximately $819 million in cash on hand and securities. Total current assets are valued at $10.147 billion and total current liabilities are $11.618 billion, for a current ratio of 0.87. The industry median is 1.18. Kroger's quick ratio is 0.33 versus an industry median of 0.74. The balance sheet is characterized by total debt-equity ratio of 228% versus an industry median of 52%. This suggests Kroger is more leveraged than its peers. The interest coverage ratio is 5.08, meaning it does not have any issues paying interest expenses on its outstanding debt. GuruFocus gives Kroger an overall financial strength rating of 6 out of 10.
The company generated $4.6 billion in operating cash flow over the past 12 months, of which nearly 12.1% was used to pay dividends or for growth purposes.
For the next year, analysts foresee a 2% decline in the company’s earnings. Over the next five years, they expect Kroger’s earnings to decrease 2.30% on average every year.
GuruFocus gives Kroger a profitability and growth rating of 7 out of 10.
Kroger is currently trading around $23.09 per share on the New York Stock Exchange with a price-earnings (P/E) ratio of 13.98, a price-sales (P/S) ratio of 0.18 and a price-book (P/B) ratio of 3.36.
The average target price is $23.18. The recommendation rating is 2.5 out of 5.
Kroger distributes an annual dividend of 50 cents through quarterly payments of 12.5 cents, for a dividend yield of 2.43%.
Disclosure: I have no positions in Kroger.
