Kroger Co. (NYSE: KR) is set to report its fiscal third-quarter financial results before the markets open on Thursday. The consensus estimates call for $0.39 in earnings per share (EPS) on $25.22 billion in revenue. In the same period of the previous year, the retailer posted EPS of $0.35 and revenue of $24.99 billion.

This company has been very well established as a leading grocery store chain in America for years now. This past month, Kroger announced that it is going to get a tad larger. Roundy’s is now being acquired by Kroger.

What Kroger gets here is a complementary footprint of 151 more stores, and a new geographic print in Wisconsin — and also 34 Mariano’s locations in Chicago — and includes Pick ‘n Save, Copps and Metro Market banners.

The size of the acquisition is said to be some $800 million, but that is after the assumption of debt. The terms of the agreement were unanimously approved by the boards of directors of both companies.

Considering the most recent earnings report, it appears that Kroger has been gaining against its organic rival Whole Foods. Not to mention that the outlook for Kroger is brighter with the second quarter’s increased guidance.

A solid product-mix toward natural, organic and fresh items has lifted Kroger during this time. At the same time, this product shift is favorable from a gross-margin perspective, while still addressing the healthy and natural food market.

Ahead of the earnings report, a few analysts weighed in on Kroger:

• RBC Capital reiterated a Sector Perform rating with a $38 price target.
• Guggenheim has a Buy rating with a $43 price target.
• Deutsche Bank reiterated a Buy rating.
• Telsey Advisory has an Outperform rating and raised its price target to $43 from $41.

So far in 2015, Kroger has outperformed the market, with the stock up over 20% year to date. Over the past 52 weeks, the stock is up nearly 30%.

Shares of Kroger were trading at $38.06 Wednesday, with a consensus analyst price target of $42.23 and a 52-week trading range of $27.32 to $39.43.

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