Kroger Company KR reported weaker-than-expected sales for the third quarter on Thursday.
The company reported third-quarter adjusted earnings per share of 98 cents, in-line with the street view. Quarterly sales of $33.634 billion (down 0.9% year-on-year) missed the analyst consensus estimate of $34.204 billion. Identical Sales ex-fuel increased by 2.3%.
Chairman and CEO Rodney McMullen said, “Kroger achieved strong sales results in the third quarter led by our pharmacy and digital performance, which reflects the strength and diversity of our model.
We continued to grow total households this quarter by delivering exceptional value for customers, with low prices, personalized offers and great quality Our Brands products, all through a seamless shopping experience. We appreciate our associates for their continued efforts to elevate the customer experience, delivering on our key priorities of full, fresh and friendly.”
Kroger has narrowed its FY2024 adjusted EPS guidance from $4.30-$4.50 to $4.35-$4.45, compared to the $4.44 estimate. The company also expects identical sales growth, excluding fuel, to be between 1.20% and 1.50%
Kroger shares fell 0.9% to trade at $60.18 on Friday.
These analysts made changes to their price targets on Kroger following earnings announcement.
- JP Morgan analyst Ken Goldman maintained Kroger with an Overweight and raised the price target from $59 to $69.
- Roth MKM analyst Bill Kirk maintained the stock with a Neutral and raised the price target from $52 to $56.
Considering buying KR stock? Here’s what analysts think:
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