UPDATE: Kroger Q4 Profit Tops Expectations, Shares Surge

Shares of

jumped more than 4% in pre-market trading after the company reported stronger-than-expected earnings for the fourth quarter and issued an upbeat full-year outlook. The Cincinnati, Ohio-based company posted quarterly net income of $518 million, or $1.04 per share, compared to $422 million, or $0.81 per share, in the year-ago period. Kroger recorded a LIFO charge of $9 million in the quarter, versus a $10 million LIFO charge in the year-ago quarter. Its revenue climbed 8.5% to $25.21 billion, while sales excluding fuel surged 14.2%. However, analysts were expecting earnings of $0.90 per share on revenue of $25.13 billion. Identical supermarket sales, excluding fuel, climbed 6% during the quarter. During 2014, the company's total active workforce rose by around 25,000. Chairman and CEO Rodney McMullen said, "2014 was an outstanding year by all measures. Kroger captured more share of the massive food market, delivered on our commitments and invested to grow our business…While improved fuel margins contributed to our results in the second half of the year, our core operating performance without fuel shows that our associates are improving our relationship with customers in ways that grow loyalty and generate strong shareholder returns." For 2015, Kroger expects a profit of $3.80 to $3.90 per share and comparable supermarket sales growth, excluding fuel, of 3% to 4%. Analysts had projected earnings of $3.72 per share. Kroger shares gained 4.81% to $73.00 in pre-market trading.