Supermarket heavyweight Kroger matched earnings expectations Thursday and topped revenue forecasts, but gave cautious profit guidance amid increasing competition in groceries.
Results: EPS of 63 cents on revenue of $31.03 billion, with same-store sales excluding fuel up 1.5%.
Outlook: Full-year EPS of $1.95-$2.15, with the midpoint below the consensus of $2.11, as gross margins come under press. Same-store sales should rise 1.5%-2%.
Stock: Shares 12.4% to 22.98 in the stock market today, crashing below its 200-day moving average. Going into earnings, the stock had hit resistance at its 50-day moving average, sliding even further below the key level on Wednesday. Walmart rose 0.2%, Whole Foods owner Amazon added 0.4%, and Sprouts Farmers Market fell 4.4%.
Walmart, No. 1 in the grocery space by market share, has so far been finding support at its longer-term 200-day line after breaching support at the 50-day on an earnings report that included slowing e-commerce growth. Kroger is the No. 2 player in grocery.
The parent of over two dozen companies — including Fred Meyer, Harris Teeter and Ralphs — has been beefing up its in-store technology and online grocery efforts as it competes with Walmart and looks to fend off Amazon’s Whole Foods.
Kroger reportedly offered $300 million-$400 million for Boxed.com recently, with Amazon also wooing the so-called “Costco for millennials.”
Source: Investor’s Business Daily