The Kroger Co. First Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component The Kroger Co. (NYSE:KR) will unveil its latest earnings on Thursday, June 14, 2012. Kroger is a retail chain operating food and drug stores, multi-department stores, jewelry stores, and convenience stores in the United States.

The Kroger Co. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 72 cents per share, a rise of 2.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 73 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 18.4% compared to last year’s $2.32.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by one cent, reporting profit of 50 cents per share against a mean estimate of net income of 49 cents. In the third quarter of the last fiscal year, the company exceeded forecasts by 2 cents with profit of 33 cents versus a mean estimate of net income of 31 cents.

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Wall St. Revenue Expectations: Analysts predict a rise of 6.2% in revenue from the year-earlier quarter to $29.15 billion.

Analyst Ratings: Analysts are bullish on Kroger, as nine analysts rate it as a buy, two rate it as a sell and seven rate it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $307 million (49 cents a share) from a profit of $278 million (44 cents) a year earlier, but beat analyst expectations. Revenue rose 7.4% to $21.41 billion from $19.93 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 10.9% in the first quarter of the last fiscal year, 11.3% in the second quarter of the last fiscal year and 10.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Kroger reported a loss in the last quarter, which followed three quarters of profit. The company reported a profit of $196 million in the third quarter of the last fiscal year, a profit of $281 million in the second of the last fiscal year and a profit of $432 million in the first quarter of the last fiscal year.

Stock Price Performance: Between March 14, 2012 and June 8, 2012, the stock price fell $2.65 (-10.9%), from $24.22 to $21.57. The stock price saw one of its best stretches over the last year between August 10, 2011 and August 17, 2011, when shares rose for six straight days, increasing 7.1% (+$1.53) 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% (-61 cents) over that span.

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

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