Grocery retail giant Kroger (NYSE: KR) will be reporting results this Thursday before market hours. Here’s what investors should know.
Kroger missed analysts’ revenue expectations last quarter, reporting revenues of $34.73 billion, up 1.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ gross margin estimates but a slight miss of analysts’ EBITDA estimates.
Is Kroger a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Kroger’s revenue to be flat year on year, in line with its flat revenue from the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Kroger’s peers in the non-discretionary retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Grocery Outlet delivered year-on-year revenue growth of 3.6%, beating analysts’ expectations by 1.4%, and Target reported revenues up 6.7%, topping estimates by 3.4%. Grocery Outlet’s stock price was unchanged after the resultsand Target’s price followed a similar reaction.
Read our full analysis of Grocery Outlet’s results here and Target’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 9.4% on average over the last month. Kroger is down 6.2% during the same time and is heading into earnings with an average analyst price target of $75.36 (compared to the current share price of $64.08).
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