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Kroger (KR) Set to Report Q4 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 fourth-quarter fiscal 2023 results on Mar 7 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $37,265 million, indicating an increase of 7% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to improve year over year. Over the past 30 days, the Zacks Consensus Estimate for fourth-quarter earnings per share has been stable at $1.13. The consensus figure implies a rise of 14.1% from the prior-year quarter.
The company has a trailing four-quarter earnings surprise of 6.4%, 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
Despite facing headwinds such as tightening consumer spending, higher interest rates and reduced government benefits like SNAP, Kroger has strategically positioned itself to weather these challenges. The company's commitment to providing exceptional value through lower prices, personalized promotions and rewards has resonated well with customers. This focus on value has driven strong engagement from budget-conscious households.
Additionally, Kroger's omnichannel shopping experience, including pickup and delivery services, has been a significant driver of growth. Furthermore, the company's alternative profit businesses, such as Kroger Precision Marketing and Kroger Health, have demonstrated balanced growth and profitability. These segments contribute to overall earnings growth and generate additional revenue streams.
Moreover, the fourth quarter typically includes the holiday season, characterized by increased consumer spending on groceries and household essentials. Kroger's diverse product offerings, including fresh foods and holiday meal bundles, position the company to capitalize on higher consumer demand during this period. Investments in personalized promotions and digital capabilities have resulted in increased redemptions and loyalty among digitally engaged households, further driving potential revenue growth.
Also, Kroger has undertaken cost-saving initiatives aimed at enhancing operational efficiency and improving profitability. These efforts encompass various strategies, including optimizing the Our Brand product line, implementing sourcing efficiencies and enhancing supply-chain operations. By streamlining processes and eliminating waste across its business operations, Kroger seeks to drive sustainable savings.
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 #4 (Sell) and an Earnings ESP of 0.00%. 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 +0.56% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 99 cents suggests a rise of 1% from 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 $1.84 billion, which indicates a jump of 5.9% from the figure reported in the prior-year quarter. Sprouts Farmers has a trailing four-quarter earnings surprise of 10%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.58% and carries a Zacks Rank #2. The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share is pegged at $3.60, up 9.1% year over year.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $59.2 billion, which calls for an increase of 7.1% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +2.32% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.27 suggests a rise of 10.5% from the year-ago quarter.
Burlington Stores’ top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $3.03 billion, indicating an increase of 10.3% from the figure reported in the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 9.4%, on average.
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Kroger (KR) Set to Report Q4 Earnings: Key Factors to Note
The Kroger Co. (KR - Free Report) is likely to register an increase in the top line when it reports fourth-quarter fiscal 2023 results on Mar 7 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $37,265 million, indicating an increase of 7% from the prior-year reported figure.
The bottom line of this operator of a supermarket chain is expected to improve year over year. Over the past 30 days, the Zacks Consensus Estimate for fourth-quarter earnings per share has been stable at $1.13. The consensus figure implies a rise of 14.1% from the prior-year quarter.
The company has a trailing four-quarter earnings surprise of 6.4%, 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
Despite facing headwinds such as tightening consumer spending, higher interest rates and reduced government benefits like SNAP, Kroger has strategically positioned itself to weather these challenges. The company's commitment to providing exceptional value through lower prices, personalized promotions and rewards has resonated well with customers. This focus on value has driven strong engagement from budget-conscious households.
Additionally, Kroger's omnichannel shopping experience, including pickup and delivery services, has been a significant driver of growth. Furthermore, the company's alternative profit businesses, such as Kroger Precision Marketing and Kroger Health, have demonstrated balanced growth and profitability. These segments contribute to overall earnings growth and generate additional revenue streams.
Moreover, the fourth quarter typically includes the holiday season, characterized by increased consumer spending on groceries and household essentials. Kroger's diverse product offerings, including fresh foods and holiday meal bundles, position the company to capitalize on higher consumer demand during this period. Investments in personalized promotions and digital capabilities have resulted in increased redemptions and loyalty among digitally engaged households, further driving potential revenue growth.
Also, Kroger has undertaken cost-saving initiatives aimed at enhancing operational efficiency and improving profitability. These efforts encompass various strategies, including optimizing the Our Brand product line, implementing sourcing efficiencies and enhancing supply-chain operations. By streamlining processes and eliminating waste across its business operations, Kroger seeks to drive sustainable savings.
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 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 #4 (Sell) and an Earnings ESP of 0.00%. 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 +0.56% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 99 cents suggests a rise of 1% from 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 $1.84 billion, which indicates a jump of 5.9% from the figure reported in the prior-year quarter. Sprouts Farmers has a trailing four-quarter earnings surprise of 10%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.58% and carries a Zacks Rank #2. The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share is pegged at $3.60, up 9.1% year over year.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $59.2 billion, which calls for an increase of 7.1% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +2.32% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.27 suggests a rise of 10.5% from the year-ago quarter.
Burlington Stores’ top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $3.03 billion, indicating an increase of 10.3% from the figure reported in the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 9.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.