Economy

Kroger shares jump 10% on strong results

Kroger shares jump 10% on strong results

Looking ahead, Kroger reiterated its previously announced full-year EPS outlook of $2.00 to $2.05, which is above the $1.97 per share that analyst are looking for.

The Cincinnati-based supermarket chain reported Q3 earnings per share (EPS) of $0.44, which was $0.04 better than the Wall Street consensus estimate of $0.40. Vetr raised Kroger from a "buy" rating to a "strong-buy" rating and set a $27.01 price objective on the stock in a research report on Wednesday, August 9th. Janus Henderson Group PLC now owns 8,260,260 shares of the company's stock valued at $192,630,000 after acquiring an additional 8,137,179 shares during the last quarter. The company has a debt-to-equity ratio of 2.13, a current ratio of 0.87 and a quick ratio of 0.33.

The pressure is certainly on Kroger to deliver within its guidance range, and the closer it comes to the higher end of the guidance, the better it will be for the stock price to continue its recovery path.

Kroger shares jump 10% on strong results
Kroger shares jump 10% on strong results

As you can see from the graph above, Kroger has been slowly improving its comparable store sales growth since the fourth quarter of 2016, and third quarter numbers will be extremely important, as further growth would mean the company's sales are finally back on a positive growth trend. If Kroger can hold its operating margin levels steady and still post increase in traffic and transactions, then expect the stock to rise sharply after the earnings. In the trailing twelve months, gross profit margin was 22% and net profit margin of the company was 2.40%. The stock has a market cap of $26.72 billion, a PE ratio of 14.26 and a beta of 0.78. During the same period a year ago, the firm earned $0.41 earnings per share. They issued a "hold" rating and a $32.00 target price on the stock.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 1st. Oppenheimer cut shares of Kroger to a "market perform" rating and decreased their price target for the company from $28.00 to $23.00 in a research note on Friday, September 8th. Investors of record on Wednesday, November 15th will be issued a dividend of $0.125 per share. Finally, BidaskClub downgraded Kroger from a "buy" rating to a "hold" rating in a research report on Thursday, August 17th. A rating of 1 or 2 would represent a Buy, and a 3 rating would signify a Hold on the stock. The stock presently has a consensus rating of "Hold" and a consensus price target of $36.05. The ex-dividend date is Thursday, May 11th. Kroger's dividend payout ratio is presently 30.30%.

COPYRIGHT VIOLATION WARNING: This story was first reported by Week Herald and is the property of of Week Herald. If you are reading this piece of content on another website, it was copied illegally and republished in violation of USA & worldwide copyright and trademark law. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States.

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