Thursday, February 9, 2023
HomeMarketKroger's Earnings Are Thursday. Here's What to Expect.

Kroger’s Earnings Are Thursday. Here’s What to Expect.

Kroger agreed to merge with fellow grocer Albertsons in October.

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Dreamstime

It’s been a great year for grocery stores, and
Kroger
‘s upcoming earnings are another chance for the stock to extend its lead over the broader market.

Analysts are looking for Kroger (KR) to earn 81 cents a share from revenue of $34 billion when it reports its third-quarter results on Thursday. That compares with earnings of 78 cents and revenue of $31.9 billion in the year-earlier period.

Kroger, which agreed to merge with fellow grocer
Albertsons
(
ACI
) in October, has had a great year, rising 8.7% even as the
S&P 500
has tumbled by double digits. The company delivered a beat-and-raise quarter in September after turning in robust results in June and March as well.

Although higher prices at the grocery store have hurt shoppers, that hasn’t translated into pain for Kroger—quite the opposite.

Its second-quarter results showed signs of improvement in gross margins. That is a sign that the chain wasn’t feeling too much pressure to offer steep discounts, and that Americans’ focus on essential items like food and fuel are benefiting its core business.

While investors have fretted about the changing landscape of food retail given competition from big players such as
Amazon.com
(AMZN) and
Walmart
(WMT), Kroger shares haven’t taken a hit. Despite some prepandemic bumps, the stock is up more than 90% in the past five years, compared with a gain of just over 50% for the S&P 500.

Write to Teresa Rivas at teresa.rivas@barrons.com

Credit: marketwatch.com

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