Kroger Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Kroger (NYSE:KR) will unveil its latest earnings on Thursday, November 29, 2012. Kroger is a retail chain operating food and drug stores, multi-department stores, jewelry stores, and convenience stores in the United States.

Kroger Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 43 cents per share, a rise of 30.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 42 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 43 cents during the last month. For the year, analysts are projecting net income of $2.41 per share, a rise of 23% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at profit of 51 cents a share versus the estimate of net income of 49 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose 42.3% to $279 million (51 cents a share) from $196 million (33 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.5% to $21.73 billion from $20.59 billion.

Stock Price Performance: Between August 29, 2012 and November 23, 2012, the stock price rose $2.83 (12.8%), from $22.15 to $24.98. The stock price saw one of its best stretches over the last year between July 24, 2012 and August 1, 2012, when shares rose for seven straight days, increasing 5.2% (+$1.09) over that span. It saw one of its worst periods between May 1, 2012 and May 9, 2012 when shares fell for seven straight days, dropping 2.6% (-62 cents) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5.1% in revenue from the year-earlier quarter to $21.63 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.4% in the fourth quarter of the last fiscal year, 5.8% in the first quarter and 39% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, two rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.78 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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