Kroger's Earnings Beat Last Year's by 18%

Kroger (NYSE: KR  ) reported earnings on June 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 25 (Q1), Kroger met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.

Margins grew across the board.

Revenue details
Kroger recorded revenue of $30.04 billion. The 14 analysts polled by S&P Capital IQ anticipated a top line of $30.19 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.92. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.88 per share. GAAP EPS of $0.92 for Q1 were 18% higher than the prior-year quarter's $0.78 per share.

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 20.6%, 10 basis points better than the prior-year quarter. Operating margin was 2.9%, 10 basis points better than the prior-year quarter. Net margin was 1.6%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $22.71 billion. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $99.04 billion. The average EPS estimate is $2.76.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 639 members out of 706 rating the stock outperform, and 67 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Kroger a green thumbs-up, and 10 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 $33.42.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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  • Report this Comment On June 24, 2013, at 6:52 AM, bestwaytoriches wrote:

    Seth,

    KR has massive debt and soon to roll over. volume is very weak to support there rich stock price.

    Valuations are stretched and I believe KR will fall below $ 27. KR has just 3 stars this indicate undecided traders. Charts show a big correction and institutions will be a net seller this quarter adding more downward pressure. Over all good people and clean stores.

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