Tags: Kroger | outlook | earnings | profit

Kroger Raises Outlook After Strong Results

Thursday, 14 June 2012 09:19 AM

The Kroger Co. is forecasting a rosier year after the company's customer-loyalty programs helped boost net income in the first quarter.

The nation's largest traditional grocery store chain says it earned $439.4 million, or 78 cents per share, for the three months ended May 19. That compares with $432.3 million, or 70 cents a share, a year ago. The higher per-share figure in the latest quarter was the result of a reduced number of outstanding shares.

Analysts on average expected a profit of 72 cents per share, according to FactSet.

The Cincinnati-based company, which operates Ralphs, Food 4 Less and other grocery stores, also says it authorized a $1 billion share buyback.

For the quarter, Kroger said revenue at stores open at least a year rose 4.2 percent, marking the 34th straight quarter of growth. The figure is a key performance metric because it strips out the effect of newly opened and closed stores.

Total revenue for the quarter was $29.06 billion, up from $27.46 billion but shy of Wall Street expectations of $29.16 billion.

Based on the strong first quarter, the company lifted its outlook for the year to $2.33 to $2.40 per share, up from the previous $2.28 to $2.38 per share. Analysts expected $2.32 per share.

Shares of Kroger were up $1.01, or almost 5 percent, at $22.30, in pre-market trading.

© Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


   
1Like our page
2Share
224
2012-19-14
Thursday, 14 June 2012 09:19 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved