How Kroger Comps and Guidance Saved Earnings
Kroger released disappointing fiscal third-quarter financial results before the markets opened on Thursday.
Kroger Co. (NYSE: KR) released its fiscal third-quarter financial results before the markets opened on Thursday. The company had $0.35 in earnings per share (EPS) on $25.1 billion in revenue. That compared to consensus estimates from Thomson Reuters of $0.39 in EPS on revenue of $25.22 billion. The same period from the previous year had $0.35 in EPS on $24.99 billion in revenue.
The company achieved its 48th consecutive quarter of positive identical supermarket sales growth, excluding fuel. This sales growth totaled 5.4% in the third quarter of fiscal 2015.
Kroger returned over $1.1 billion to shareholders through buybacks and dividends over the last four quarters. During the third quarter, Kroger repurchased 853,000 common shares for a total investment of $31 million.
For the fourth quarter of fiscal 2015, Kroger expects identical supermarket sales growth, excluding fuel, of 4.0% to 4.5%. This implies an annual growth rate of roughly 5.00% to 5.25% for fiscal 2015. Separately, Kroger raised its EPS estimates for the fiscal full year to $2.02 to $2.04; the previous level was $1.92 to $1.98. The consensus estimates call for $2.00 in EPS on $110.18 billion in revenue for the fiscal full year.
Kroger Chairman and CEO Rodney McMullen commented on earnings:
Our associates delivered another quarter of excellent identical supermarket sales and earnings results that provide great momentum as we head into the holiday season. Kroger’s consistent results demonstrate once again that our relentless focus on customers is the key to sustainable shareholder returns. We continue to implement our growth plan and expect to exceed our long-term net earnings per diluted share growth rate for fiscal 2015.
On the books, cash and store deposits in-transit totaled $1.24 billion at the end of the fiscal third quarter, compared to $1.21 billion at the end of the same period from the previous year.
Shares of Kroger were up 2.3% Thursday morning to $39.00, 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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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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