Kroger Earnings Preview: Co. Expected To Report Record Quarter

Shares of the Kroger Co KR are surging on Wednesday afternoon, in anticipation of the announcement of the company’s first quarter financial results, scheduled for Thursday morning, before the market opens.

According to crowdsourced site Estimize, this is expected to be a record quarter. The Street is modeling consensus earnings of $1.21 per share on revenue of $33.268 billion. This means earnings would be the highest ever, up 11 percent year-over-year.

Furthermore, the crowd is even more bullish, and projects consensus earnings of $1.22 per share on revenue of $33.269 billion. And, the chart above shows that Kroger has a history of beating estimates, so results could be even better!

It is also interesting to see how sentiment has changed over time. As it can be appreciated in the chart above, the Street’s consensus experienced a steep fall during March, but then recuperated, returning to its original $1.21 level. The crowd’s estimates also went through some ups and downs, but ultimately tended upwards.

Oppenheimer Weighs In

In a report published Tuesday, Oppenheimer analysts Rupesh Parikh and Erica Eiler also previewed Kroger’s first-quarter earnings. According to the note, they are modeling earnings of $1.21 per share, in line with the Street’s consensus, and in the upper end of the management’s guidance.

Related Link: What's Coming For Kroger? Oppenheimer Answers

A recent Benzinga article explains that “Sturdier gross margins and a potentially lower LIFO charge could drive earnings upside, while gas margins are likely to remain quite consistent with the ones registered in the same quarter last year.”