U.S. grocery store chain Kroger Co. (KR) has beat Wall Street forecasts across the board with its first-quarter financial results.
The Cincinnati-based company reported earnings per share of $1.43 U.S. on revenue of $45.27 billion U.S.
Those results topped analysts’ consensus forecast of $1.35 U.S. in earnings and revenue of $44.87 billion U.S.
The company said its sales rose 0.5% from last year. Kroger also reaffirmed its 2024 earnings-per-share guidance of $4.30 U.S. to $4.50 U.S.
However, Kroger’s stock slipped about 1% after the earnings report because management warned of declining sales at its in-store pharmacies.
Owing to a decline in pharmacy sales, Kroger expects its earnings for the current second quarter of the year to fall.
Investors also apparently were underwhelmed by a lack of progress on Kroger’s proposed merger with rival grocery store chain Albertsons (ACI) that was first announced in late 2022.
The U.S. Federal Trade Commission (FTC) has sued to block the deal over concerns about reduced competition and increased prices for consumers. Kroger is fighting the FTC lawsuit.
Prior to today (June 21), the stock of Kroger had risen 10% over the last 12 months to trade at $50.28 U.S. per share.
