Uncovering Potential: Kroger's Earnings Preview

Kroger KR is preparing to release its quarterly earnings on Friday, 2025-06-20. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Kroger to report an earnings per share (EPS) of $1.46.

Investors in Kroger are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

Last quarter the company beat EPS by $0.03, which was followed by a 4.58% increase in the share price the next day.

Here's a look at Kroger's past performance and the resulting price change:

Performance of Kroger Shares

Shares of Kroger were trading at $65.95 as of June 17. Over the last 52-week period, shares are up 30.49%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Kroger

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Kroger.

Analysts have provided Kroger with 5 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $74.8, suggesting a potential 13.42% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Casey's General Stores, Sprouts Farmers Market and Albertsons Companies, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Casey's General Stores, with an average 1-year price target of $500.71, suggesting a potential 659.23% upside.
• Analysts currently favor an Neutral trajectory for Sprouts Farmers Market, with an average 1-year price target of $177.6, suggesting a potential 169.29% upside.
• Analysts currently favor an Outperform trajectory for Albertsons Companies, with an average 1-year price target of $24.89, suggesting a potential 62.26% downside.

Snapshot: Peer Analysis

The peer analysis summary outlines pivotal metrics for Casey's General Stores, Sprouts Farmers Market and Albertsons Companies, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Kroger ranks at the bottom for Revenue Growth among its peers. It also has the lowest Gross Profit margin. However, Kroger's Return on Equity is higher than one of its peers. Overall, Kroger's performance is mixed compared to its peers in the analysis.

About Kroger

Kroger is one of the largest grocery retailers in the United States with more than 2,700 stores across a portfolio of over 20 supermarket banners. The company boasts an ingrained presence in US communities, citing that it is a top-two grocer in most of its major market areas. Over one fourth of Kroger's roughly $110 billion in nonperishable and fresh food sales (about 75% of revenue) stems from its private-label portfolio, of which the company manufactures about 30% of units via its own food production plants. The company also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.

A Deep Dive into Kroger's Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Negative Revenue Trend: Examining Kroger's financials over 3 months reveals challenges. As of 31 January, 2025, the company experienced a decline of approximately -7.44% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Kroger's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.79% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.8%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Kroger's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.07%, the company showcases efficient use of assets and strong financial health.

Debt Management: Kroger's debt-to-equity ratio stands notably higher than the industry average, reaching 3.03. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Kroger visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.