Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Harris Teeter Supermarkets Inc (HTSI), Safeway Inc. (SWY): How Solid The Kroger Co. (KR) Earnings Could Send Shares Soaring

Page 1 of 2

The Kroger Co. (NYSE:KR) will release its quarterly report on Thursday, and investors have gotten extremely bullish about the grocery chain, bidding shares up to new all-time record highs earlier in the summer. If The Kroger Co. (NYSE:KR) earnings can deliver solid growth, then the stock could see even bigger gains despite tough competitive conditions in the grocery industry.

The Kroger Co. (NYSE:KR)The grocery business is inherently difficult, with razor-thin margins requiring companies to be quick on their feet to take advantage of sometimes-fleeting competitive edges. But The Kroger Co. (NYSE:KR) has handled the onslaught of big-box retailers and specialty natural-foods markets with a measured strategic approach that has helped the company thrive where others have fared worse. Let’s take an early look at what’s been happening with The Kroger Co. (NYSE:KR) over the past quarter and what we’re likely to see in its report.

Stats on Kroger

Analyst EPS Estimate $0.60
Change From Year-Ago EPS 17.6%
Revenue Estimate $22.67 billion
Change From Year-Ago Revenue 4.3%
Earnings Beats in Past 4 Quarters 4

Source: Yahoo! Finance.

Will Kroger earnings leave investors satisfied this quarter?
Analysts have gotten more optimistic about Kroger earnings in recent months, hiking their July quarter estimates by a penny per share and their full-year projections by a nickel per share. The stock has also done well, climbing 14% since early June.

What’s particularly impressive about The Kroger Co. (NYSE:KR)’s stock performance is that it came despite April-quarter earnings that disappointed investors. Kroger managed to boost profits 18% on a 3.4% gain in revenue for the quarter. But sales fell short of analyst estimates, worrying investors about Kroger’s ability to sustain its growth despite its impressive track record of 38 straight quarters of same-store sales increases. Even raising its earnings guidance wasn’t enough to prevent a short-term stock slide.

The big piece of news for Kroger this quarter came from its announcement that it would acquire Harris Teeter Supermarkets Inc (NYSE:HTSI) in a $2.44 billion deal. Harris Teeter Supermarkets Inc (NYSE:HTSI) is relatively small, with just over 200 store locations. But it has a strong reputation in the mid-Atlantic region that will help The Kroger Co. (NYSE:KR) boost its presence there and in the Southeast. Some have speculated that Kroger could buy A&P operator Great Atlantic & Pacific Tea as well, which could give it more Northeastern exposure.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!