Kroger Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Kroger (NYS: KR) reported earnings on June 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 19 (Q1), Kroger met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved.


Margins shrank across the board.

Revenue details
Kroger logged revenue of $29.06 billion. The 15 analysts polled by S&P Capital IQ expected to see revenue of $29.24 billion on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $27.46 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.78. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.73 per share. GAAP EPS of $0.78 for Q1 were 11% higher than the prior-year quarter's $0.70 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.9%, 140 basis points worse than the prior-year quarter. Operating margin was 2.8%, 20 basis points worse than the prior-year quarter. Net margin was 1.5%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $21.95 billion. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $96.47 billion. The average EPS estimate is $2.36.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 622 members out of 689 rating the stock outperform, and 67 members rating it underperform. Among 185 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give Kroger a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kroger is outperform, with an average price target of $26.05.

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The article Kroger Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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