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Kroger's (KR) Q1 Earnings Coming Up: Key Factors at Play
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The Kroger Co. (KR - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2023 results on Jun 15 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $45,419 million, indicating an improvement of 1.8% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to have declined year over year. Although the Zacks Consensus Estimate for first-quarter earnings per share has risen by a penny to $1.42 over the past seven days, it still suggests a decline of 2.1% from the year-ago period.
The company has a trailing four-quarter earnings surprise of 9.8%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 10%.
Factors to Note
At-home food consumption trends, competitive pricing, compelling offerings and a better shopping experience are likely to have contributed to Kroger’s first-quarter top line. The company 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.
We note that the Zacks Consensus Estimate for identical sales, without fuel, for the quarter under discussion is currently pegged at 3.3%. This compares to an increase of 4.1% in the said metric registered in the year-ago period.
Without a doubt, Kroger’s digital business remains one of its growth drivers, rising 12% year over year in the last reported quarter. 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 company has been expanding its Customer Fulfillment Center to ensure efficient deliveries.
While the aforementioned factors raise optimism, margins remain an area to watch. Increased labor costs and lower fuel margins are likely to have weighed on overall margins.
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 +4.14%. 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:
Urban Outfitters (URBN - Free Report) currently has an Earnings ESP of +2.28% and sports a Zacks Rank #1. The company is expected to register an increase in the bottom line when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of 85 cents suggests a rise of 32.8% from the year-ago quarter.
Urban Outfitters’ top line is anticipated to rise year over year. The consensus mark for URBN’s revenues is pegged at $1.24 billion, indicating an increase of 4.9% from the figure reported in the year-ago quarter. Urban Outfitters has a trailing four-quarter earnings surprise of 12.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +2.26% and a Zacks Rank #2. The company is expected to register a decline in the bottom line when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.42 suggests a decrease of 16.4% from the year-ago quarter.
Casey's General’s top line is anticipated to drop year over year. The consensus mark for CASY’s revenues is pegged at $3.88 billion, indicating a decline of 12.8% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 7.5%, on average.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is likely to register a decrease in the bottom line when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 32 cents suggests a decline of 38.5% from the year-ago quarter.
Bath & Body Works’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.57 billion, which indicates a drop of 3% from the figure reported in the prior-year quarter. Bath & Body Works has a trailing four-quarter earnings surprise of 44.6%, on average.
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Kroger's (KR) Q1 Earnings Coming Up: Key Factors at Play
The Kroger Co. (KR - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2023 results on Jun 15 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $45,419 million, indicating an improvement of 1.8% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to have declined year over year. Although the Zacks Consensus Estimate for first-quarter earnings per share has risen by a penny to $1.42 over the past seven days, it still suggests a decline of 2.1% from the year-ago period.
The company has a trailing four-quarter earnings surprise of 9.8%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 10%.
Factors to Note
At-home food consumption trends, competitive pricing, compelling offerings and a better shopping experience are likely to have contributed to Kroger’s first-quarter top line. The company 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.
We note that the Zacks Consensus Estimate for identical sales, without fuel, for the quarter under discussion is currently pegged at 3.3%. This compares to an increase of 4.1% in the said metric registered in the year-ago period.
The Kroger Co. Price, Consensus and EPS Surprise
The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. Quote
Without a doubt, Kroger’s digital business remains one of its growth drivers, rising 12% year over year in the last reported quarter. 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 company has been expanding its Customer Fulfillment Center to ensure efficient deliveries.
While the aforementioned factors raise optimism, margins remain an area to watch. Increased labor costs and lower fuel margins are likely to have weighed on overall margins.
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 +4.14%. 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:
Urban Outfitters (URBN - Free Report) currently has an Earnings ESP of +2.28% and sports a Zacks Rank #1. The company is expected to register an increase in the bottom line when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of 85 cents suggests a rise of 32.8% from the year-ago quarter.
Urban Outfitters’ top line is anticipated to rise year over year. The consensus mark for URBN’s revenues is pegged at $1.24 billion, indicating an increase of 4.9% from the figure reported in the year-ago quarter. Urban Outfitters has a trailing four-quarter earnings surprise of 12.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +2.26% and a Zacks Rank #2. The company is expected to register a decline in the bottom line when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.42 suggests a decrease of 16.4% from the year-ago quarter.
Casey's General’s top line is anticipated to drop year over year. The consensus mark for CASY’s revenues is pegged at $3.88 billion, indicating a decline of 12.8% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 7.5%, on average.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is likely to register a decrease in the bottom line when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 32 cents suggests a decline of 38.5% from the year-ago quarter.
Bath & Body Works’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.57 billion, which indicates a drop of 3% from the figure reported in the prior-year quarter. Bath & Body Works has a trailing four-quarter earnings surprise of 44.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.