Supermarket chain Kroger (KR) is set to release its second-quarter financials on September 12. Analysts on Wall Street are anticipating earnings of $0.91 per share for Q2, marking a 5.2% decline year-over-year. On the revenue front, they forecast a modest increase of 0.4% compared to the previous year, projecting a total of $34.1 billion, according to data from TipRanks.
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It’s important to highlight that the company has exceeded consensus EPS estimates in each of the last eight quarters.
Key Takeaways from TipRanks’ Bulls & Bears Tool
Analysts forecast a decline in earnings, despite an expected rise in revenues, adding to the mixed outlook on the company’s performance.
According to TipRanks’ Bulls Say, Bears Say tool shown below, bulls believe that Kroger is well-positioned in the grocery and retail market. It competes effectively by offering a strong variety of products, personalized services, and value-added programs like fuel rewards and loyalty initiatives. They added that the company benefits from improved digital profitability, and effective cost savings, supporting long-term margin stability.
Also, the analysts emphasized that Kroger’s white-glove delivery service sets it apart from competitors, reflecting high customer satisfaction.
Meanwhile, bears pointed out that Kroger faces potential market share losses and intensifying competition in the promotional landscape. The analysts also remain concerned about the reduced second-quarter guidance and a less favorable merger outlook.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can gauge what options traders anticipate for Kroger stock right after its earnings report. The expected earnings move is calculated by evaluating the at-the-money straddle of options that are set to expire soon after the announcement.
At present, the Options tool indicates that options traders are predicting a 5.89% swing in either direction for KR stock.
Is Kroger Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on KR stock based on seven Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 15.7% year-to-date increase, the average KR price target of $58.80 per share implies 13.14% upside potential.
