Kroger Co Q3 Earnings Report: Adjusted EPS Meets Expectations With Strong Sales
Kroger had a solid showing in Q3, with adjusted earnings per share (EPS) meeting expectations at 98 cents, slightly lower than the reported EPS of 84 cents. Total sales reached $33.63 billion, a bit below the expected $34.16 billion, but identical-store sales, excluding fuel, saw a healthy growth of 2.3%, beating estimates of 1.72%. The company’s gross margin stood strong at 22.9%, outperforming the projected 22.3%.
Kroger’s operating profit landed at $828 million, with adjusted FIFO operating profit slightly below expectations at $1.02 billion compared to the expected $1.03 billion. The pharmacy and digital sectors played significant roles in driving the company’s strong sales performance in the third quarter.
When it comes to analyst ratings, Kroger has 12 buys, 10 holds, and 1 sell. Analysts at Smartkarma, like Baptista Research, have been keeping a close eye on Kroger’s recent performance. Their report, titled ‘The Kroger Co.: An Insight Into Its Competitive Positioning,’ notes a mixed performance in the second quarter of 2024. Kroger’s strategic operating model focusing on customer-centricity, internal efficiencies, and in-house brands is helping the company stay competitive. Revenue growth through digital sales channels and personalized promotions has also been a highlight.
Looking at Kroger’s Smart Scores, the company seems well-positioned for future growth and performance. With strong Growth and Momentum scores of 4 each, Kroger appears to have a positive trajectory for expansion and maintaining market momentum. While the Resilience score of 2 indicates some vulnerability to external economic challenges, balanced Value and Dividend scores of 3 each signal stability and decent financial health.
Overall, Kroger looks to be on solid ground with room for growth and a focus on shareholder returns, painting a favorable picture for its long-term prospects in the grocery retail sector. Remember, this article is based on historical data and analyst forecasts, so it’s always a good idea to do your research before making any financial decisions.
