Grocery retail giant Kroger (NYSE: KR) will be reporting results this Friday before market hours. Here’s what you need to know.
Kroger beat analysts’ revenue expectations last quarter, reporting revenues of $46.12 billion, up 2.2% year on year. It was a mixed quarter for the company, with full-year EPS guidance slightly topping analysts’ expectations but a miss of analysts’ gross margin estimates.
Is Kroger a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Kroger’s revenue to grow 2% year on year, improving from its flat revenue in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Kroger’s peers in the non-discretionary retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Grocery Outlet delivered year-on-year revenue growth of 1.1%, beating analysts’ expectations by 2.1%, and Sprouts reported revenues up 4.7%, in line with consensus estimates. Grocery Outlet traded up 6.2% following the results while Sprouts was also up 9.7%.
Read our full analysis of Grocery Outlet’s results here and Sprouts’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the non-discretionary retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.1% on average over the last month. Kroger’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $69.77 (compared to the current share price of $56.65).
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