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James Li
James Li
Articles (478)  | Author's Website |

Kroger Falls on Weak Earnings Guidance

Company otherwise reports strong revenue growth during the 12 months ending February 2018

March 08, 2018 | About:

The Kroger Co. (NYSE:KR), a major grocery store chain, said revenues for the three-month period ending Feb. 3 increased 12.4% from the prior-year quarter. Despite this, the company expects identical supermarket sales growth to decline this year from the prior year.

Brief summary of earnings

The Cincinnati-based grocery store reported 96 cents in net earnings per share for the quarter, up approximately 43 cents from the prior-year quarter.

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CEO Rodney McMullen said the company finished the year with “positive momentum in [Kroger’s] sales and overall business,” which stemmed from the launch of “Restock Kroger” last fall. The company reported $112.7 billion in total revenue for the year, including $31 billion in the final three months.

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Company reports lower earnings guidance for upcoming year

Although the company reported strong revenue growth in the prior year, Kroger expects net earnings per share to range between $1.95 and $2.15 per share for the upcoming year, approximately 10 cents lower than analyst estimates. Kroger Chief Financial Officer Michael Schlotman said in a CNBC interview that the company expects to “take a balanced approach” with respect to the tailwinds from corporate tax cuts.

Kroger’s share price tumbled 12.44% from its previous close of $26.23 on the weak earnings guidance. Despite this, the company still has a GuruFocus profitability rank of 7, driven primarily by expanding operating margins and a three-year CAGR of sales that outperform 70% of global competitors.

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See also

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Disclosure: No positions.

About the author:

James Li
I am an editorial assistant and researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


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Comments

DanaBoy
DanaBoy - 3 months ago    Report SPAM

I don't care about no stinkin' QUARTERLY numbers! It's either ANNUAL numbers or nothing! ;^P

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