- Kroger’s forecast for adjusted EPS in the fiscal year is set between $4.60 and $4.80, falling short of the estimated $4.82.
- The company predicts identical-store sales growth, excluding fuel, between 2% and 3%. This exceeds the estimate of 2.11%.
- Capital expenditure is projected to range from $3.6 billion to $3.8 billion, slightly below the estimate of $3.82 billion.
- Adjusted free cash flow is expected between $2.8 billion and $3.0 billion.
- Adjusted FIFO operating profit is anticipated to be between $4.7 billion and $4.9 billion, against an estimate of $4.78 billion.
- For the fourth quarter, adjusted EPS was reported at $1.14, exceeding the estimate of $1.11.
- Earnings per share for the fourth quarter were 90 cents.
- Total sales for the fourth quarter were $34.31 billion, slightly below the expected $34.51 billion.
- Fourth quarter identical-store sales growth, excluding fuel, reached 2.4%, outperforming the estimate of 1.95%.
- Operating profit for the fourth quarter was $912 million, with an adjusted FIFO operating profit of $1.17 billion, surpassing the estimate of $1.14 billion.
- Kroger expects a full-year net interest expense between $650 and $675 million in 2025, assuming current interest rates.
- The company credits the strength of its model and disciplined execution for the strong fourth-quarter results.
- Current recommendations include 13 buys, 10 holds, and 2 sells for Kroger.
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Kroger Co on Smartkarma
Analyst coverage of Kroger Co on Smartkarma, an independent investment research network, reveals valuable insights from top independent analysts. Baptista Research, a reputable provider on Smartkarma, published two insightful reports on Kroger Co.
In the report titled “Kroger’s Earnings and Albertsons’ Lawsuit: What Investors Need to Know Now!” by Baptista Research, the sentiment leans bullish. The analysis highlights Kroger’s third-quarter financial performance in 2024, showcasing a blend of strengths and challenges amidst shifting market dynamics. The company’s pharmacy and digital sales experienced solid gains, supported by competitive pricing and personalized offers, leading to increased customer savings through digital engagement.
Another report by Baptista Research titled “The Kroger Co.: An Insight Into Its Competitive Positioning” also takes a bullish stance. This report discusses Kroger Co‘s mixed performance in the second quarter of 2024 and its strategic operating model emphasizing customer-centricity and internal efficiencies. Revenue enhancements through digital sales channels and personalized promotions are noted as key factors contributing to Kroger Co‘s competitive edge.
A look at Kroger Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the long-term outlook for Kroger Co based on Smartkarma Smart Scores, it is apparent that the company has a strong focus on growth and momentum. With a growth score of 5 and a momentum score of 4, Kroger Co seems poised for expansion and positive market performance in the future. This indicates that the company is actively seeking opportunities for growth and is showing positive signs of staying competitive in the market.
Although Kroger Co shows strength in growth and momentum, its overall outlook is somewhat tempered by its resilience score of 2. This suggests that the company may face challenges in terms of withstanding economic downturns or market disruptions. However, with balanced scores of 3 for both value and dividend, Kroger Co is also demonstrating stability and a commitment to shareholder returns, which bodes well for long-term investors looking for a mix of growth and income in their portfolio.
### The Kroger Co. operates supermarkets and convenience stores in the United States. The Company also manufactures and processes some of the foods that its supermarkets sell. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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