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Free Research Report as Kroger's Sales Gained 3.4% and Adjusted EPS Surged 26%

ACCESSWIRE

Stock Monitor: Casey's General Stores Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 12, 2018 / If you want access to our free earnings report on The Kroger Co. (NYSE: KR) ("Kroger"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KR. The Company reported its first quarter fiscal 2018 operating and financial results on June 21, 2018. The grocery store outperformed top- and bottom-line expectations. Additionally, Kroger, which sold its convenience store unit this year for $2.15 billion and also bought meal-kit seller Home Chef, raised the low-end of its GAAP and adjusted earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Casey's General Stores, Inc. (NASDAQ: CASY), which also belongs to the Services sector as the Company Kroger. Do not miss out and become a member today for free to access this upcoming report at:

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www.active-investors.com/registration-sg/?symbol=CASY

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Kroger most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=KR

Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, ended May 26, 2018, Kroger's total sales rose 3.4% to $37.5 billion compared to $36.3 billion in Q1 FY17. The Company's total sales, excluding fuel, increased 2.3% on a y-o-y basis in the reported quarter. Kroger's revenue numbers surpassed analysts' estimates of $37.2 billion.

During Q1 FY18, Kroger's operating, general, and administrative costs as a rate of sales, excluding fuel and other adjusted items in Q1 FY18 and Q1 FY17, increased 3 basis points (bps), while its rent and depreciation increased by 1 bp. The slight increase as a rate of sales was driven by the Company's investment in service and higher starting wages.

For Q1 FY18, Kroger reported an operating profit of $1.03 billion, or 2.7% of sales, compared to $631 million, or 1.7% of sales, in Q1 FY17.

Kroger reported net earnings of $2.0 billion, or $2.37 per diluted share, in Q1 FY18 compared to $303 million, or $0.32 per diluted share, in Q1 FY17. The Company's adjusted net earnings were $626 million, or $0.73 per diluted share, in the reported quarter compared to $546 million, or $0.58 per diluted share, in the year earlier same quarter. Kroger's earnings numbers beat Wall Street's estimates of $0.63 per share.

Financial Strategy

Kroger's financial strategy is to use its free cash flow to drive growth while also maintaining its current investment grade debt rating and returning capital to shareholders.

Over the last four quarters, Kroger has used cash to contribute an incremental $1.2 billion pre-tax to Company-sponsored pension plans, and $467 million pre-tax to satisfy withdrawal obligations to the Central States Pension Fund. Additionally, Kroger has repurchased 110 million common shares for $2.7 billion, which includes $1.1 billion repurchased with after-tax proceeds from the sale of Kroger's convenience store business unit under a previously-announced $1.2 billion accelerated stock repurchase plan. The Company also paid $442 million in dividends and invested $3.0 billion in capital during the reported period.

Kroger's net total debt to adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) ratio increased to 2.43, on a 52-week basis. The Company's net total debt to adjusted EBITDA ratio target range was 2.30 to 2.50. Kroger is expecting its net total debt to adjusted EBITDA ratio to increase throughout FY18, due to increased borrowings to fund its investment in Ocado, its planned merger with Home Chef, and tax payments related to the gain on the sale of the convenience store business unit.

Outlook

For the full fiscal year 2018, Kroger is forecasting identical sales growth, excluding fuel, to range from 2.0% to 2.5%. The Company raised the low-end of its net earnings per diluted share guidance range to $3.64 to $3.79 for FY18 compared to its earlier GAAP range of $3.59 to $3.79. Additionally, Kroger raised the low-end of its adjusted net earnings per diluted share guidance range to $2.00 to $2.15 for FY18 from its previous range of $1.95 to $2.15.

Stock Performance Snapshot

July 11, 2018 - At Wednesday's closing bell, The Kroger's stock dropped 2.78%, ending the trading session at $27.97.

Volume traded for the day: 10.51 million shares.

Stock performance in the last month - up 9.51%; previous three-month period - up 19.12%; past twelve-month period - up 23.60%; and year-to-date - up 1.89%

After yesterday's close, The Kroger's market cap was at $23.47 billion.

Price to Earnings (P/E) ratio was at 8.99.

The stock has a dividend yield of 2.00%.

The stock is part of the Services sector, categorized under the Grocery Stores industry.

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