We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kroger (KR) to Report Q4 Earnings: What Awaits the Stock?
Read MoreHide Full Article
The Kroger Co. (KR - Free Report) is slated to release fourth-quarter fiscal 2019 results on Mar 5, before the opening bell. We note that in the last reported quarter, the company recorded a negative earnings surprise of 2.1%.
The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged in the past 30 days at 56 cents. This suggests year-over-year increase of 16.7% from the prior-year reported figure. Meanwhile, the consensus mark for revenues is pegged at $28,753 million, suggesting growth of 2.4% from the prior-year period.
Key Factors to Note
Kroger, which operates in the thin-margin grocery industry, has been trying all means to strengthen position, not only with respect to products but also in terms of the way consumers prefer shopping grocery. The company is launching plant-based products and eyeing technological expansion.
Notably, the company’s “Restock Kroger” program involving investments in omni-channel platform, identifying margin-rich alternative profit streams, merchandise optimization, and lowering of expenses has been gaining traction. Apart from these, its order online, pick up in store initiative and home delivery and self-checkout services are also worth mentioning.
As part of the program, the company has been making investments in space optimization, store remodeling and technology advancements. Cumulatively, these have been aiding identical supermarket sales.
While aforementioned factors raise optimism, stiff competition in the grocery segment and an aggressive promotional environment remain primary headwinds. Again, any volatility in fuel costs, higher freight expenses and incremental investments are likely to show on margins.
Our proven model does not conclusively predict an earnings beat for Kroger this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kroger carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3.
Casey's General Stores (CASY - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Kroger (KR) to Report Q4 Earnings: What Awaits the Stock?
The Kroger Co. (KR - Free Report) is slated to release fourth-quarter fiscal 2019 results on Mar 5, before the opening bell. We note that in the last reported quarter, the company recorded a negative earnings surprise of 2.1%.
The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged in the past 30 days at 56 cents. This suggests year-over-year increase of 16.7% from the prior-year reported figure. Meanwhile, the consensus mark for revenues is pegged at $28,753 million, suggesting growth of 2.4% from the prior-year period.
Key Factors to Note
Kroger, which operates in the thin-margin grocery industry, has been trying all means to strengthen position, not only with respect to products but also in terms of the way consumers prefer shopping grocery. The company is launching plant-based products and eyeing technological expansion.
Notably, the company’s “Restock Kroger” program involving investments in omni-channel platform, identifying margin-rich alternative profit streams, merchandise optimization, and lowering of expenses has been gaining traction. Apart from these, its order online, pick up in store initiative and home delivery and self-checkout services are also worth mentioning.
As part of the program, the company has been making investments in space optimization, store remodeling and technology advancements. Cumulatively, these have been aiding identical supermarket sales.
While aforementioned factors raise optimism, stiff competition in the grocery segment and an aggressive promotional environment remain primary headwinds. Again, any volatility in fuel costs, higher freight expenses and incremental investments are likely to show on margins.
The Kroger Co. Price, Consensus and EPS Surprise
The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Kroger this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kroger carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank of #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3.
Casey's General Stores (CASY - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>