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Kroger (KR) Lined Up for Q2 Earnings: Key Factors to Note
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The Kroger Co. (KR - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results on Sep 9 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $34,397 million, indicating an improvement of 8.6% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to have increased year over year. The Zacks Consensus Estimate for second-quarter earnings per share has risen by a penny to 81 cents over the past seven days, which suggests an increase of 1.3% from the year-ago period.
The company has a trailing four-quarter earnings surprise of 20.3%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 13.3%.
Key Factors to Consider
Kroger has been making significant investments to enhance product freshness and quality as well as expand digital capabilities and payment solutions. Impressively, it has been introducing new items under its “Our Brands” portfolio. The company has been expanding its Customer Fulfillment Center to ensure efficient deliveries. Cumulatively, these factors are likely to have favored the company’s second-quarter top line.
The Zacks Consensus Estimate for identical sales, without fuel, for the quarter under discussion is currently pegged at 4.3%. This suggests a sharp increase from a 0.6% decline in the said metric registered in the year-ago period.
Without a doubt, Kroger’s digital business remains one of its key growth drivers. Realizing the need of the hour, the company has been focusing on a no-contact delivery option, low-contact pickup service and ship-to-home orders. Its ‘Kroger Delivery Now’ service provides customers with food and household staples in 30 minutes. Also, its focus on the margin-rich alternative profit business bodes well.
The aforementioned factors instill optimism regarding results. However, margins remain an area to watch. Supply-chain issues, increased labor and transportation expenses and higher commodity costs are likely to have weighed on margins.
Our proven model predicts an earnings beat for Kroger this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Kroger has a Zacks Rank #2 and an Earnings ESP of +4.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Casey's (CASY - Free Report) currently has an Earnings ESP of +11.33% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $3.84 suggests growth of 20.4% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $4.59 billion, indicating an increase of 44.2% from the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago quarter.
Dave & Buster's Entertainment’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.11% and a Zacks Rank #3. The company is likely to register a bottom-line improvement when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $4.11 suggests an improvement from the $3.90 reported in the year-ago quarter.
Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $71.85 billion, which indicates an improvement of 14.6% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 9.7%, on average.
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Kroger (KR) Lined Up for Q2 Earnings: Key Factors to Note
The Kroger Co. (KR - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results on Sep 9 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $34,397 million, indicating an improvement of 8.6% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to have increased year over year. The Zacks Consensus Estimate for second-quarter earnings per share has risen by a penny to 81 cents over the past seven days, which suggests an increase of 1.3% from the year-ago period.
The company has a trailing four-quarter earnings surprise of 20.3%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 13.3%.
Key Factors to Consider
Kroger has been making significant investments to enhance product freshness and quality as well as expand digital capabilities and payment solutions. Impressively, it has been introducing new items under its “Our Brands” portfolio. The company has been expanding its Customer Fulfillment Center to ensure efficient deliveries. Cumulatively, these factors are likely to have favored the company’s second-quarter top line.
The Zacks Consensus Estimate for identical sales, without fuel, for the quarter under discussion is currently pegged at 4.3%. This suggests a sharp increase from a 0.6% decline in the said metric registered in the year-ago period.
Without a doubt, Kroger’s digital business remains one of its key growth drivers. Realizing the need of the hour, the company has been focusing on a no-contact delivery option, low-contact pickup service and ship-to-home orders. Its ‘Kroger Delivery Now’ service provides customers with food and household staples in 30 minutes. Also, its focus on the margin-rich alternative profit business bodes well.
The aforementioned factors instill optimism regarding results. However, margins remain an area to watch. Supply-chain issues, increased labor and transportation expenses and higher commodity costs are likely to have weighed on margins.
The Kroger Co. Price, Consensus and EPS Surprise
The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. Quote
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Kroger this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Kroger has a Zacks Rank #2 and an Earnings ESP of +4.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Casey's (CASY - Free Report) currently has an Earnings ESP of +11.33% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $3.84 suggests growth of 20.4% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $4.59 billion, indicating an increase of 44.2% from the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago quarter.
Dave & Buster's Entertainment’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.11% and a Zacks Rank #3. The company is likely to register a bottom-line improvement when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $4.11 suggests an improvement from the $3.90 reported in the year-ago quarter.
Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $71.85 billion, which indicates an improvement of 14.6% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 9.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar