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Kroger (KR) Set to Report Q2 Earnings: Key Factors to Note
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The Kroger Co. (KR - Free Report) is likely to register a marginal decline in the top line when it reports second-quarter fiscal 2023 results on Sep 8 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $34,251 million, indicating a drop of 1.1% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to have improved year over year. Over the past 30 days, the Zacks Consensus Estimate for second-quarter earnings per share has been stable at 92 cents. The figure implies an increase of 2.2% from the prior-year quarter.
The company has a trailing four-quarter earnings surprise of 7.8%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 5.6%.
Factors to Consider
Kroger appears to be navigating a tough operating environment. Factors such as inflation, reduced SNAP benefits and the current economic backdrop, particularly a higher-interest-rate scenario, have posed challenges, predominantly for budget-conscious consumers.
Despite these headwinds, Kroger's well-defined customer segmentation strategy, emphasis on value and focus on its 'Our Brands' portfolio are expected to provide resilience. The company remains committed to its core strengths, including an array of fresh products, personalized shopping experiences and a seamless digital ecosystem, all aimed at sustaining its momentum.
We note that the Zacks Consensus Estimate for identical sales, excluding fuel, for the quarter under discussion is currently pegged at 1.4%. The figure suggests a deceleration in the growth rate compared to the robust 3.5% increase recorded in the first quarter. This reflects evolving market conditions.
Markedly, Kroger's digital business continues to shine, with impressive 15% year-over-year growth in the last reported quarter. The 'Kroger Delivery Now' service, offering swift 30-minute deliveries of essential groceries and household items, remains a potent growth catalyst. 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.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict 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 odds of an earnings beat. However, that’s not the case here.
Kroger has a Zacks Rank #3 but an Earnings ESP of -0.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Sprouts Farmers (SFM - Free Report) currently has an Earnings ESP of +0.72% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 62 cents suggests a rise of 1.6% reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sprouts Farmers’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.68 billion, which indicates a jump of 5.7% from the figure reported in the prior-year quarter. Sprouts Farmers has a trailing four-quarter earnings surprise of 14.3%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.29% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.36 suggests a drop of 17.9% from the year-ago quarter.
Casey's General Stores’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, which indicates a drop of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.33% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.71 suggests a rise of 12.1% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.67 billion, which calls for an increase of 9.1% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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Kroger (KR) Set to Report Q2 Earnings: Key Factors to Note
The Kroger Co. (KR - Free Report) is likely to register a marginal decline in the top line when it reports second-quarter fiscal 2023 results on Sep 8 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $34,251 million, indicating a drop of 1.1% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to have improved year over year. Over the past 30 days, the Zacks Consensus Estimate for second-quarter earnings per share has been stable at 92 cents. The figure implies an increase of 2.2% from the prior-year quarter.
The company has a trailing four-quarter earnings surprise of 7.8%, on average. In the last reported quarter, this Cincinnati, Ohio-based company’s bottom line surpassed the Zacks Consensus Estimate by 5.6%.
Factors to Consider
Kroger appears to be navigating a tough operating environment. Factors such as inflation, reduced SNAP benefits and the current economic backdrop, particularly a higher-interest-rate scenario, have posed challenges, predominantly for budget-conscious consumers.
Despite these headwinds, Kroger's well-defined customer segmentation strategy, emphasis on value and focus on its 'Our Brands' portfolio are expected to provide resilience. The company remains committed to its core strengths, including an array of fresh products, personalized shopping experiences and a seamless digital ecosystem, all aimed at sustaining its momentum.
The Kroger Co. Price, Consensus and EPS Surprise
The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. Quote
We note that the Zacks Consensus Estimate for identical sales, excluding fuel, for the quarter under discussion is currently pegged at 1.4%. The figure suggests a deceleration in the growth rate compared to the robust 3.5% increase recorded in the first quarter. This reflects evolving market conditions.
Markedly, Kroger's digital business continues to shine, with impressive 15% year-over-year growth in the last reported quarter. The 'Kroger Delivery Now' service, offering swift 30-minute deliveries of essential groceries and household items, remains a potent growth catalyst. 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.
What Does the Zacks Model Unveil?
Our proven model does not conclusively predict 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 odds of an earnings beat. However, that’s not the case here.
Kroger has a Zacks Rank #3 but an Earnings ESP of -0.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Sprouts Farmers (SFM - Free Report) currently has an Earnings ESP of +0.72% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 62 cents suggests a rise of 1.6% reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sprouts Farmers’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.68 billion, which indicates a jump of 5.7% from the figure reported in the prior-year quarter. Sprouts Farmers has a trailing four-quarter earnings surprise of 14.3%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.29% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.36 suggests a drop of 17.9% from the year-ago quarter.
Casey's General Stores’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, which indicates a drop of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.33% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.71 suggests a rise of 12.1% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.67 billion, which calls for an increase of 9.1% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.