CINCINNATI (AP) - Stronger sales at Kroger pushed the supermarket past Wall Street's expectations for the third quarter and shares rose 2 percent in early trading after it raised its earnings projections for the year.
CINCINNATI (AP) — Stronger sales at Kroger pushed the supermarket past Wall Street's expectations for the third quarter and shares rose 2 percent in early trading after it raised its earnings projections for the year.
The Cincinnati company runs more than 2,600 supermarket chains around the country, including Kroger, Harris Teeter and Ralphs. It said that sales at stores open more than a year, considered an important sign of a retailer's health, rose 5.4 percent in the quarter from a year ago when fuel sales were excluded. Kroger said it expects another rise in the metric during the current between 4 percent and 4.5 percent.
Because of strong results so far this year, Kroger said it now expects full-year earnings between $2.02 per share and $2.04 per share, up from its previous forecast between $1.92 per share and $1.98 per share. Analysts expected earnings of $1.99 per share, according to FactSet.
Kroger reported fiscal third-quarter earnings of $428 million, or 43 cents per share, compared with $345 million, or 35 cents per share, in the same period a year ago. The results surpassed Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 39 cents per share.
Revenue rose less than half a percent to $25.08 billion in the period, missing Wall Street expectations. Five analysts surveyed by Zacks expected $25.22 billion. Kroger said its total sales were hurt by falling oil prices.
Kroger is in the process of buying Roundy's Inc., the owner of supermarket chains Mariano's, Metro Market and Pick 'n Save. Kroger announced last month that it planned to pay $178 million to by Roundy's and expand in the Midwest. The deal is expected to close by the end of the year.
Shares of Kroger Co. rose 80 cents, or 2.1 percent, to $38.91 in morning trading Thursday.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KR at http://www.zacks.com/ap/KR
Keywords: Kroger, Earnings Report