Kroger Lowers Earnings Guidance, Stock Falls 6% (KR)

The Cincinnati, Ohio based Kroger Company KR announced on Thursday morning that it met consensus Wall Street earnings estimates and beat revenue expectations but it lowered its full year earnings forecast. The Kroger Company reported 3rd quarter net earnings of $202.2 million, or 32 cents per share, compared to a net loss of $874.9 million, or $1.35 per share, a year earlier. The company's revenue rose 5.9% to $18.7 billion, up from $17.66 billion a year earlier. According to a survey of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 32 cents per share, on revenue of $18.51 billion. Chairman and chief executive officer David B. Dillon said, "Kroger's customers today are looking for lower prices and a great shopping experience, and our Customer 1st strategy delivers all that and more. Our team increased identical supermarket sales, earnings and earnings per share in the third quarter while controlling expenses to keep prices low for our customers. These results show Kroger's strategy is working and that our core grocery business is strong and resilient." The company lowered its full year earnings forecast range to $1.65 to $1.78 per share, down from the previous range of $1.60 to $1.80 per share. The Kroger Company (KR) closed the previous trading day at $23.86 per share and the shares were down 6.1% to $22.40 during pre-market trading. Analysts covering the company's stock give it a consensus price target of $24.18 per share. Read more from Benzinga's Company news.