Kroger Boosts FY22 Outlook On Solid Q2 Beat; Plans $1B Stock Buyback

  • Kroger Co KR reported second-quarter FY22 sales growth of 9.2% year-on-year to $34.64 billion, beating the consensus of $34.25 billion.
  • Identical Sales without fuel increased by 5.8%.
  • Adjusted EPS of $0.90 beat the analyst consensus of $0.77.
  • The gross margin was 20.9%, and the FIFO gross margin rate, excluding fuel, increased by 2 basis points Y/Y.
  • Operating, general and administrative expenses rose 6.4% Y/Y to $5.4 billion.
  • The operating margin was 2.8%, and operating income for the quarter rose 13.7% to $954 million.
  • Kroger held $1.1 billion in cash and equivalents as of August 13, 2022. Net cash provided by operating activities year-to-date totaled $2.4 billion.
  • The company had a net total debt of $12.4 billion as of August 13, 2022.
  • Buyback: On September 9th, the company's Board of Directors authorized a new $1 billion share repurchase program.
  • Credit Suisse analyst Robert Moskow maintained a Neutral rating on the shares of Kroger and lowered the price target to $55 from $60.
  • Outlook: Kroger raised the FY22 adjusted EPS outlook to $3.95 - $4.05 (prior outlook $3.85 - $3.95) versus the consensus of $3.96.
  • It expects an FY22 operating profit of $4.6 billion - $4.7 billion (prior view $4.3 billion - $4.4 billion).
  • Price Action: KR shares are trading higher by 2.36% at $49.47 on the last check Friday.
  • Photo Via Company
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceBuybacksMoversTrading IdeasGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!