Kroger Co (NYSE: KR) has confirmed that it will release its fiscal Q2 2022 earnings on Friday, September 10, 2021.
What to look for
The food retailer, which runs more than 2,500 outlets in the US, is expected to follow the trend in recent quarters when it reports Q2 2021 results by beating analysts' estimates. In the past four quarters, the supermarket chain has topped estimates by an average of 21%. So if the earnings will be better than anticipated, that could help the stock. So far this year, the stock has surged 45%, but it closed 1.39% lower on Friday last week.
Earnings: Stockearning’s EPS estimate for Q2 2021 is $0.64 per share, representing a 12% YoY decline. Historical EPS performance in the past 12 quarters has seen the company top estimates ten times (83%) and miss estimates only twice (16%). In the most recent quarter, the company had earnings of $1.19 versus estimates of $0.99 per share.
Revenue: the company reported revenue of $41.3 billion in Q1 2021, which is a 4% YoY drop excluding fuel. Kroger saw digital sales grow 16%, and adjusted EPS was $1.19. Based on Q2 2021's momentum, the company raised its full-year guidance and expected adjusted earnings per diluted share to be between $2.95 and $3.1. The company expects revenue of $30.4 billion.
Stock movement: Since Kroger's last earnings release, its stock price has gained 24.2%, from $37.55 t6o $46.65. The share price has been UP on 25 occasions over the past 45 quarters following the earnings release. So, the Historical price reaction suggests that the share price will move UP after the company releases earnings. According to the Stockearning algorithm, the stock price’s predicted move on the first day is 4% after the earnings release, while predicted movement on the seventh day is 5%.
What analysts are saying
Wells Fargo analyst Edward Kelly has revised the firm’s target price in Kroger from $39 to $46 but maintained a “Hold” rating on the shares. Kelly notes that the stock surged in recent months because the pandemic benefit has not been easy to unwind, the negative perspective on inflation failing to pay out, and Berkshire Hathaway continues to accumulate a position. The analyst believes that the 15X earnings are yet to prove to be a good investment, and that still applies currently, but he is adamant about going more negative beyond the "Hold" rating.
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