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Kroger (KR) to Post Q4 Earnings: What's in Store this Time?
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The Kroger Co. (KR - Free Report) is slated to release fourth-quarter fiscal 2016 results on Mar 2, 2017. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 2.3%. In the preceding quarter, the company witnessed a negative earnings surprise of 2.4%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is, whether Kroger will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is 53 cents, reflecting a year-over-year decline of about 7%. We note that the Zacks Consensus Estimate has been stable in the past 30 days. Analysts polled by Zacks expect revenues of $27,335 million, up more than 4% from the year-ago quarter.
Kroger forms part of the Retail-Wholesale sector. As per the latest Earnings Preview, total earnings for the sector are anticipated to decline marginally by 1.2%, however, revenue is projected to improve 4.7%. We noted that the Retail-Wholesale sector has lagged the broader market in the past three months. In the said time frame this Zacks categorized sector gained 3.7%, while S&P 500 index advanced 7.3%.
Factors at Play
A dominant position among the nation’s largest grocery retailers enables Kroger to sustain sales growth, expand store base and boost market share. We believe there remain enormous opportunities to augment identical supermarket sales, alleviate gross margin pressure and improve operating margin. In our view, Kroger’s long-term earnings per share growth rate target of 8–11% seem achievable. However, stiff competition, deflationary environment and cautious consumer spending are making things tough for Kroger. Management had earlier projected fiscal 2016 adjusted earnings in the band of $2.10–$2.15 per share.
Kroger Company (The) Price, Consensus and EPS Surprise
Our proven model does not conclusively show that Kroger is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kroger has an Earnings ESP of -3.77% as the Most Accurate estimate stands at 51 cents, while the Zacks Consensus Estimate is pegged at 53 cents. Kroger’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +1.81% and a Zacks Rank #3.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.
Staples, Inc. has an Earnings ESP of + 4.00% and a Zacks Rank #3.
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Kroger (KR) to Post Q4 Earnings: What's in Store this Time?
The Kroger Co. (KR - Free Report) is slated to release fourth-quarter fiscal 2016 results on Mar 2, 2017. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 2.3%. In the preceding quarter, the company witnessed a negative earnings surprise of 2.4%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is, whether Kroger will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is 53 cents, reflecting a year-over-year decline of about 7%. We note that the Zacks Consensus Estimate has been stable in the past 30 days. Analysts polled by Zacks expect revenues of $27,335 million, up more than 4% from the year-ago quarter.
Kroger forms part of the Retail-Wholesale sector. As per the latest Earnings Preview, total earnings for the sector are anticipated to decline marginally by 1.2%, however, revenue is projected to improve 4.7%. We noted that the Retail-Wholesale sector has lagged the broader market in the past three months. In the said time frame this Zacks categorized sector gained 3.7%, while S&P 500 index advanced 7.3%.
Factors at Play
A dominant position among the nation’s largest grocery retailers enables Kroger to sustain sales growth, expand store base and boost market share. We believe there remain enormous opportunities to augment identical supermarket sales, alleviate gross margin pressure and improve operating margin. In our view, Kroger’s long-term earnings per share growth rate target of 8–11% seem achievable. However, stiff competition, deflationary environment and cautious consumer spending are making things tough for Kroger. Management had earlier projected fiscal 2016 adjusted earnings in the band of $2.10–$2.15 per share.
Kroger Company (The) Price, Consensus and EPS Surprise
Kroger Company (The) Price, Consensus and EPS Surprise | Kroger Company (The) Quote
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Kroger is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kroger has an Earnings ESP of -3.77% as the Most Accurate estimate stands at 51 cents, while the Zacks Consensus Estimate is pegged at 53 cents. Kroger’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +1.81% and a Zacks Rank #3.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.
Staples, Inc. has an Earnings ESP of + 4.00% and a Zacks Rank #3.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>