Kroger Q3 Net Climbs 18.2 Percent

The Kroger Co. posted better than expected results in its third-quarter earnings report Thursday, driving the company’s share price toward new all-time highs. Deutsche Bank reiterated a “buy” rating on shares of Kroger in a report on Sunday, November 15th.

Kroger said profit will be as much as $2.04 a share this fiscal year, excluding some items. However, intensifying price war among grocery stores to lure budget-constrained consumers may adversely impact Kroger’s sales and margins. The stock has risen 28 percent in the last 12 months.

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.

Revenues: Kroger generated total revenue of $25,075 million that increased 0.4% year over year but came below the Zacks Consensus Estimate of $25,224 million. The new guidance is also above the $2 EPS that analysts expected before the Q3 report.

During the quarter, Kroger bought back 853000 shares for an aggregate amount of $31 million. Eight investment analysts have rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company.

Kroger’s stock price surged above $39.43 per share in pre-market trading, well above its previous all-time high of $38.34. The firm has a market cap of $38.84 billion and a price-to-earnings ratio of 20.57. Finally, Stephens reissued an “equal weight” rating and set a $43.00 target price on shares of Kroger in a research note on Wednesday, October 21st. The quarterly earnings beat expectations, despite a narrow miss on revenues.

The company’s third-quarter sales, excluding fuel, rose 5.4 percent at stores open for more than a year without expansion or relocation, beating analysts’ average estimate of 4.5 percent rise, according to research firm Consensus Metrix. The Company operated, either directly or through its subsidiaries, approximately 2,625 supermarkets and multi-department stores, approximately 1,330 of which had fuel centers.

The Kroger Co. (NYSE:KR) operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores throughout the United States. Of these stores, 1,330 have fuel centers.