Cincinnati, Ohio-based The Kroger Co. (KR) is a food and drug retailer that operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Valued at a market cap of $39.6 billion, the company is scheduled to announce its fiscal Q4 earnings for 2025 in the near future.
Ahead of this event, analysts expect this food retailer to report a profit of $1.20 per share, up 5.3% from $1.14 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $1.05 per share in the previous quarter topped the consensus estimates by nearly 1%.
For the current fiscal year, ending in January, analysts expect KR to report a profit of $4.78 per share, up 6.9% from $4.47 per share in fiscal 2024. Furthermore, its EPS is expected to grow 10.5% year-over-year to $5.28 in fiscal 2026.
KR has gained 6.6% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 13.6% return over the same time frame. However, it has slightly outpaced the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 6.5% uptick over the same time period.
On Dec. 4, shares of KR plunged 4.6% after reporting mixed Q3 results. On the upside, the company’s adjusted EPS increased 7.1% year-over-year to $1.05, surpassing consensus estimates by a penny. However, its revenue grew marginally from the year-ago quarter to $33.9 billion, but missed analyst expectations by 1.3%, which might have weighed on investor sentiment.
Wall Street analysts are moderately optimistic about KR’s stock, with an overall "Moderate Buy" rating. Among 22 analysts covering the stock, 12 recommend "Strong Buy," and 10 suggest "Hold.” The average price target for KR is $74.81, indicating a 19.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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