The Kroger Co. (NYSE:KR) declined in trading even as the company reported better-than-expected Q1 results. The retailer reported Q1 adjusted earnings of $1.43 per share, a decline of 5.3% year-over-year but exceeding consensus estimates of $1.35 per share.
Kroger’s Q1 Sales
The company reported total sales of $45.3 billion in the first quarter, compared to $45.2 billion in the same period last year. Kroger’s Q1 sales surpassed analysts’ estimates of $44.87 billion. Excluding fuel, Kroger’s sales increased by 0.6% year-over-year. The retailer’s same-store sales, excluding fuel, went up by 0.5% in the first quarter.
Kroger’s FY24 Guidance
The company reiterated its FY24 guidance, with comparable sales (excluding fuel) expected to be in the range of 0.25% to 1.75% and adjusted earnings likely to be between $4.30 and $4.50 per diluted share. For reference, analysts were expecting earnings of $4.41 per share.
Is Kroger’s a Good Stock to Buy?
Analysts remain cautiously optimistic about KR stock, with a Moderate Buy consensus rating based on five Buys, one Hold, and one Sell each. Year-to-date, KR has increased by more than 10%, and the average KR price target of $59.71 implies an upside potential of 15.76% from current levels. These analyst ratings are likely to change following Kroger’s Q1 results today.
