Kroger Plunges On Earnings Miss And Tepid Guidance


Kroger Co (NYSE:KR)

Shares of Kroger tumbled before the opening bell Thursday after the grocery giant posted downbeat revenue and earnings for its fiscal 2018 fourth quarter. Investors were also spooked by the weak fiscal 2019 earnings-per-share forecast that the company provided.

The news sent shares of the Ohio-based company were down 11.46% in pre-market trading, indicating an opening bell price of $25.18 each. KR stock has risen 1.5% over the past 12 months, trailing the S&P 500.

KR Earnings & Outlook

Kroger posted fourth quarter net income of $259 million, or $0.32 per share, compared with $854 million, or $0.96 per share, in the same period last year. Excluding one-time items and gains, earnings were pegged at $0.48 per share. Group revenue, the company said, was $28.1 billion, a decline of 9.5% year-over-year.

On average, analysts surveyed by Refinitiv had called for fourth quarter adjusted earnings of $0.52 per share on revenue of $28.38 billion. For the current fiscal year, the company expects earnings to be in the region of $2.15 to $2.25 per share. Analysts model fiscal 2019 earnings of $2.26 per share, based on figures compiled by Refinitiv.

Kroger CEO Comments

Kroger Chairman and CEO Rodney McMullen, commented, “Kroger solidly delivered on what we set out to do in 2018, which was an investment year that laid the groundwork for us to achieve our 2020 Restock Kroger targets including financials.”

“As America’s grocer, Kroger has the winning combination of local presence plus a digital ecosystem enhanced by strategic partnerships enabling us to offer our customers anything, anytime, anywhere. We are transforming from grocer to growth company by deploying our assets to serve even more customers and create margin-rich alternative profit streams. We are well positioned to deliver on our Restock Kroger vision to serve America through food inspiration and uplift.”

Kroger Co Profile

The Kroger Co. engages in the operation of retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. It also manufactures and processes some of the food for sale in its supermarkets. The combination food and drug Stores are the primary food store format.

The multi department stores sells a wide selection of general merchandise items such as apparel, home fashion and furnishings, electronics, automotive products, toys and fine jewelry. The marketplace stores offer full-service grocery and pharmacy departments as well as an expanded general merchandise area that includes outdoor living products, electronics, home goods and toys.

The price impact warehouse stores offer a ‘no-frills, low cost’ warehouse format and feature everyday low prices plus promotions for a wide selection of grocery and health and beauty care items. The company was founded by Barney Kroger in 1883 and is headquartered in Cincinnati, OH. – CNN Money