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.
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 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.
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.)
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.
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.
Is Kroger the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Kroger to My Watchlist.