On Dec. 5, 2006, grocer Kroger (NYSE:KR) released its third-quarter earnings for the period ended Nov. 4, 2006.

  • Sales were up 4.8% overall. Same-store sales were up 4.9% including fuel sales, and 5.3% excluding fuel sales.
  • Based on its excellent performance, management upped its earnings guidance for FY 2006 from 6%-8% growth to 8%-10% and is shooting for the upper end of the range.
  • Kroger is not much of a fan favorite in our new community intelligence service, Motley Fool CAPS. Investors give it a 1-star rating. If you have an opinion, bring it to CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$14,698.8

$14,020.5

4.8%

Net Profit

$214.7

$185.4

15.8%

EPS

$0.30

$0.25

20.0%

Diluted Shares

720.0

731.9

(1.6%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

24.3%

24.4%

(0.2)

Operating Margin

3.1%

3.0%

0.1

Net Margin

1.5%

1.3%

0.2

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$141.3

$236.9

(40.4%)

Accounts Rec.

$718.4

$664.2

8.2%

Inventory

$4,967.7

$4,785.8

3.8%



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$3,846.7

$3,762.8

2.2%

Long-Term Debt

$6,127.3

$6,596.5

(7.1%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$1,830.7

$2,049.0

(10.7%)

Capital Expenditures

$1,177.8

$1,010.9

16.5%

Free Cash Flow

$652.9

$1,038.1

(37.1%)



Find out why Fools always follow the money.

Related Companies:

  • Safeway (NYSE:SWY)
  • Whole Foods (NASDAQ:WFMI)
  • Ahold (NYSE:AHO)

Related Foolishness:

Whole Foods is a Motley Fool Stock Advisor recommendation.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, David Meier did not own shares in any of the companies mentioned. Fool rules for disclosure are here.