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Here's How Kroger (KR) Looks Placed Ahead of Q3 Earnings
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The Kroger Co. (KR - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2022 results on Dec 1 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $33,999 million, indicating an improvement of 6.7% 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 third-quarter earnings per share has been stable at 80 cents over the past 30 days, which suggests an increase of 2.6% from the year-ago period.
The company has a trailing four-quarter earnings surprise of 15.7%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 8.4%.
Key Factors to Note
Kroger has been making significant investments to enhance product freshness and quality and 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 third-quarter top line.
The Zacks Consensus Estimate for identical sales, without fuel, for the quarter under discussion is currently pegged at 4.1%. This suggests an increase from a 3.1% jump in the said metric registered in the year-ago period.
Without a doubt, Kroger’s digital business remains one of its 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 about the 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 #3 and an Earnings ESP of +1.95%. 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:
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.55 suggests an increase of 22.6% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +12.58% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.10 suggests an increase of 19.7% from the year-ago quarter.
Casey's General’s top line is anticipated to have risen year over year. The consensus mark for CASY’s revenues is pegged at $4.16 billion, indicating an increase of 27.5% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 1.3% on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +10.31% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 14 cents suggests a decline of 67.4% from the year-ago quarter.
Five Below’s top line is expected to have increased marginally year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $611.2 million, which suggests a rise of 0.6% from the figure reported in the prior-year quarter. In the trailing four quarters, FIVE delivered an earnings beat of 11.6%, on average.
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Here's How Kroger (KR) Looks Placed Ahead of Q3 Earnings
The Kroger Co. (KR - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2022 results on Dec 1 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $33,999 million, indicating an improvement of 6.7% 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 third-quarter earnings per share has been stable at 80 cents over the past 30 days, which suggests an increase of 2.6% from the year-ago period.
The company has a trailing four-quarter earnings surprise of 15.7%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 8.4%.
Key Factors to Note
Kroger has been making significant investments to enhance product freshness and quality and 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 third-quarter top line.
The Zacks Consensus Estimate for identical sales, without fuel, for the quarter under discussion is currently pegged at 4.1%. This suggests an increase from a 3.1% jump in the said metric registered in the year-ago period.
Without a doubt, Kroger’s digital business remains one of its 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 about the 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 #3 and an Earnings ESP of +1.95%. 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:
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.55 suggests an increase of 22.6% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +12.58% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.10 suggests an increase of 19.7% from the year-ago quarter.
Casey's General’s top line is anticipated to have risen year over year. The consensus mark for CASY’s revenues is pegged at $4.16 billion, indicating an increase of 27.5% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 1.3% on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +10.31% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 14 cents suggests a decline of 67.4% from the year-ago quarter.
Five Below’s top line is expected to have increased marginally year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $611.2 million, which suggests a rise of 0.6% from the figure reported in the prior-year quarter. In the trailing four quarters, FIVE delivered an earnings beat of 11.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.