Earnings Review and Free Research Report: Kroger’s Revenue Grew 5%

LONDON, UK / ACCESSWIRE / June 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Kroger Co. (NYSE: KR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=KR, following the Company’s disclosure of its first quarter fiscal 2017 earnings results on June 15, 2017. The grocery store chain surpassed revenue estimates and met earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on KR. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=KR.

Earnings Reviewed

For the first three months ended May 20, 2017, Kroger’s total sales increased 4.9% to $36.29 billion compared to $34.60 billion in Q1 2016, driven by the recent merger of ModernHEALTH. The Company’s total sales, excluding fuel, increased 2.9% on a y-o-y basis. The Company’s sales numbers were ahead of analysts’ expectations of $35.6 billion.

During Q1 2017, the Company’s gross margin was 22.1% of sales. Excluding fuel, ModernHEALTH, and the LIFO charge, Kroger’s gross margin decreased 45 basis points from the same period last year. The Company recorded $25 million LIFO charge in Q1 2017 compared to a $15 million LIFO charge in Q1 2016.

For the reported quarter, Kroger’s operating, general, and administrative costs as a rate of sales, excluding fuel, ModernHEALTH, and the 2017 adjustment items, increased 27 basis points from Q1 2016. The Company’s FIFO operating margin on a rolling four quarters basis dropped 41 basis points compared to the prior year.

Kroger’s net income for Q1 2017 was $303 million, or $0.32 per diluted share, compared to $696 million, or $0.71 per diluted share, in Q1 2016. The Company’s earnings per diluted share included charges related to the withdrawal liability for certain multi-employer pension funds and a Voluntary Retirement Offering. Excluding the effect of these charges, Kroger’s adjusted net earnings were $546 million, or $0.58 per diluted share, matching Wall Street’s expectations for earnings of $0.58 per share.

Balance Sheet

For the reported quarter, the Company’s net total debt to adjusted EBITDA ratio increased to 2.33 compared to 2.12 during the same period last year. This result was due to the merger with ModernHEALTH and the repurchase of shares. The Company’s return on invested capital for the first quarter, on a rolling four quarter basis, was 12.75%.

On June 22, 2017, Kroger announced that its Board of Directors authorized an incremental $1 billion share repurchase program. The Company’s Board also approved a dividend increase from $0.48 to $0.50 on an annualized basis. The next quarterly dividend of $0.125 per share will be payable on September 01, 2017, to shareholders of record at the close of business on August 15, 2017. The Company noted that its quarterly dividend has grown at a compound annual growth rate of 13.0% since it was reinstated in 2006.

Outlook

Kroger continues to expect identical supermarket sales growth, excluding fuel, of flat to 1% growth for 2017.

Kroger lowered its FY17 GAAP net earnings guidance to the range of $1.74-$1.79 per diluted share. The Company’s adjusted net earnings guidance range is expected in the band of $2.00 to $2.05 per diluted share compared to the previous adjusted net earnings guidance range of $2.21 to $2.25 per diluted share. Kroger continues to expect capital investments excluding mergers, acquisitions, and purchases of leased facilities, to be in the $3.2 billion to $3.5 billion range for FY17.

Stock Performance

At the close of trading session on Thursday, June 29, 2017, Kroger’s stock price slightly declined 0.47% to end the day at $23.24. A total volume of 15.26 million shares were exchanged during the session, which was above the 3-month average volume of 12.98 million shares. The Company’s shares are trading at a PE ratio of 13.99 and have a dividend yield of 2.07%. At Thursday’s closing price, the stock’s net capitalization stands at $21.03 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 467199