Kroger (NYSE:KR) Releases Earnings Results, Beats Expectations By $0.05 EPS

Kroger (NYSE:KR - Get Free Report) released its quarterly earnings data on Thursday. The company reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.05, Zacks reports. The business had revenue of $34.31 billion for the quarter, compared to analyst estimates of $34.96 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. Kroger updated its FY 2025 guidance to 4.600-4.800 EPS.

Kroger Stock Up 4.7 %

Shares of KR traded up $3.03 on Friday, reaching $66.81. The company's stock had a trading volume of 10,791,860 shares, compared to its average volume of 5,868,815. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 1.74. Kroger has a twelve month low of $49.04 and a twelve month high of $67.57. The stock has a market capitalization of $48.34 billion, a PE ratio of 17.67, a PEG ratio of 2.85 and a beta of 0.51. The firm has a fifty day moving average of $62.27 and a 200-day moving average of $59.00.

Kroger Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Saturday, March 1st. Shareholders of record on Friday, February 14th were issued a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, February 14th. This represents a $1.28 annualized dividend and a yield of 1.92%. Kroger's payout ratio is 33.86%.

Wall Street Analyst Weigh In

KR has been the subject of a number of research reports. Telsey Advisory Group reissued an "outperform" rating and issued a $73.00 target price on shares of Kroger in a report on Monday, March 3rd. StockNews.com downgraded shares of Kroger from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, January 14th. Jefferies Financial Group upgraded Kroger from a "hold" rating to a "buy" rating and increased their target price for the company from $54.00 to $73.00 in a research report on Tuesday, December 3rd. Roth Mkm raised their price target on shares of Kroger from $52.00 to $56.00 and gave the company a "neutral" rating in a research note on Friday, December 6th. Finally, Citigroup raised their price target on shares of Kroger from $61.00 to $65.00 and gave the stock a "neutral" rating in a report on Friday. Seven analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Kroger has a consensus rating of "Moderate Buy" and a consensus price target of $67.50.

Remove Ads

Insider Buying and Selling

In related news, SVP Stuart Aitken sold 132,627 shares of the stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $63.18, for a total transaction of $8,379,373.86. Following the completion of the transaction, the senior vice president now owns 217,523 shares in the company, valued at approximately $13,743,103.14. This represents a 37.88 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Todd A. Foley sold 16,932 shares of the stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $61.44, for a total transaction of $1,040,302.08. Following the transaction, the chief financial officer now directly owns 53,782 shares of the company's stock, valued at $3,304,366.08. This represents a 23.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 169,559 shares of company stock worth $10,587,476 in the last quarter. Insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Kroger stock. Brighton Jones LLC increased its holdings in The Kroger Co. (NYSE:KR - Free Report) by 27.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 15,733 shares of the company's stock after buying an additional 3,373 shares during the period. Brighton Jones LLC's holdings in Kroger were worth $962,000 as of its most recent SEC filing. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Kroger declared that its board has authorized a stock buyback program on Wednesday, December 11th that allows the company to buyback $7.50 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 16.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Kroger Company Profile

The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.