Kroger tops analysts’ estimates for earnings and revenue in the first quarter

Kroger (NYSE: KR) released its quarterly financial results on Thursday that posted a 19% increase (excluding fuel) in comparable-store sales in the fiscal first quarter. Experts, on the other hand, had expects it to see a much lower 13.8% growth in same-store sales in Q1. In April, Kroger said its same-store sales came in 30% up in March as customers stockpiled in preparation of COVID-19 restrictions.

Shares of the company were almost 1% down in premarket trading on Thursday. At £26.68 per share, Kroger is roughly 20% up year to date in the stock market after recovering from a low of £21.59 per share in late January. In comparison, the broader S&P 500 index is about 3.6% down in 2020 so far. Learn more about why prices rise and fall in the stock market.

Kroger’s Q1 financial results versus analysts’ estimates

Kroger recorded its net income at £970 million in the first quarter that translates to £1.22 per share. In the same quarter last year, its net income was capped at £620.46 million or 76.35 pence per share. On an adjusted basis, the American retail company earned 98 pence per share in Q1 that topped the analysts’ forecast of 90 pence per share, as per FactSet.

On the sales front, the company recorded £33.39 billion in the recent quarter versus the year-ago figure of £29.94 billion worth of sales. According to FactSet, experts had forecast Kroger to print a lower £32.72 billion in sales in Q1. Kroger recently resumed normal operating hours in Mid-Atlantic.

In terms of digital sales, Kroger revealed an unparalleled 92% jump in the first quarter. Other prominent figures included in the retailer’s earnings report on Thursday include £1.04 billion of operating profit and a greater £1.21 billion of adjusted FIFO operating profit.

Kroger refrains from giving full-year guidance

Kroger also highlighted on Thursday that the ongoing Coronavirus pandemic, that has so far infected more than 2.2 million people in the United States and caused a little under 120,000 deaths, makes it difficult for the company to give meaningful guidance for the full financial year.

Kroger has taken several measures to combat the outbreak of the novel flu-like virus, including acceptance of SNAP (Supplemental Nutrition Assistance Program) aimed at low-contact pickup service and broader utilization of contactless Kroger Pay. In some of its markets, the Cincinnati-headquartered retailer also introduced 1-way aisles. Kroger invested over £667 million to support and safeguard its customers, associates, and the community at large.

At the time of writing, Kroger is valued at £20.73 billion and has a price to earnings ratio of 16.08.