6:02 PM · 12 September 2024

Kroger shares gain 5% following quarterly report

Kroger
Stocks
KR.US, Kroger Co
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Kroger (KR.US) shares are up more than 5% in today's session, as the grocery store operator's gross margin expansion in the second quarter met Wall Street expectations. Interestingly, the higher gross margin was recorded despite extensive sales and promotions for the various grocery products offered in the company's stores. 

SECOND QUARTER RESULTS

  • Adjusted earnings per share $0.93, estimated $0.91
  • Sales revenue $33.91 billion, estimated $34.05 billion
  • Gross margin 22.6%, estimated 22%
  • FIFO gross margin ratio up 42 basis points y/y
  • Operating profit $815 million
  • Adjusted FIFO operating profit $984 million, estimated $976.8 million

2025 FORECAST

  • Adjusted EPS $4.30 to $4.50, estimated $4.43
  • Adjusted free cash flow $2.5 billion to $2.7 billion
  • Adjusted FIFO operating profit $4.6 billion to $4.8 billion, estimated $4.69 billion

The company's management commented that the planned merger between Kroger and Albertsons will bring significant and tangible benefits to consumers as well as shareholders. The company announced that its ability to generate free cash flow is unwavering despite the mixed macro environment. The company's CEO added that the company will continue to pay quarterly dividends, and the size of the dividend is expected to increase over time.

The company's shares saw their biggest intraday jump in value today since March of this year. Source: xStation 

 

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