The Kroger Co. (KR - Free Report) , one of the largest grocery retailers, came out with third-quarter fiscal 2016 results, wherein earnings of 41 cents per share fell a penny short of the Zacks Consensus Estimate, and declined 4.7% from the prior-year quarter.
Further, management narrowed its fiscal 2016 adjusted earnings guidance range to $2.10 - $2.15, compared with $2.10–$2.20 per share forecasted earlier. The latest guidance excludes 7 cents charge related to the company’s commitment to restructure certain multi-employer pension obligations. Nonetheless, the company remains on track to achieve its long-term earnings growth target of 8% - 11%.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has been trending upwards over the past 30 days. Further, in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 5.4%.
Revenues: Kroger generated total revenue of $26,557 million that increased 5.9% year over year, and also surpassed the Zacks Consensus Estimate of $26,246 million. The company’s identical supermarket sales, without fuel, inched up 0.1%.
Kroger envisions identical supermarket sales growth (excluding fuel) to increase marginally, in the fourth quarter of fiscal 2016.
Zacks Rank: Currently, Kroger carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Kroger’s shares are down 3.9% during pre-market trading hours following the earnings release.
Check back later for our full write up on Kroger’s earnings report!
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