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Key Takeaways
- Kroger shares surged Thursday after the supermarket chain better-than-expected adjusted profit for the second quarter.
- Diluted EPS and revenue missed analysts’ consensus estimates.
- CEO Rodney McMullen said the chain is “confident in the facts and the strength of our position” as it fights the FTC’s legal challenges to its $24.6 billion merger with Albertsons.
Kroger (KR) shares surged Thursday after it better-than-expected adjusted profit for the second quarter.
The supermarket chain posted adjusted earnings per share (EPS) of $0.93, topping the $0.91 consensus estimate of analysts polled by Visible Alpha. Diluted EPS of $0.64 and revenue of $33.91 billion missed expectations.
Kroger affirmed most of its full-year outlook, while lifting the floor for its same-store sales growth projection, excluding fuel, to 0.75% from 0.25%. Chief Financial Officer (CFO) Todd Foley said the chain’s “positive customer trends are driving sales momentum that we expect to continue in the second half of the year.”
CEO ‘Confident in the Facts’ As Kroger Fights for Albertsons Merger
Kroger did not provide a substantial update to its progress in addressing regulatory concerns over its $24.6 billion merger with Albertsons (ACI). Chief Executive Officer (CEO) Rodney McMullen said the company is “confident in the facts and the strength of our position” as Kroger fights the Federal Trade Commission (FTC)‘s attempts to halt the merger.
Kroger shares rose more than 6% to $54.80 in late-morning trading Thursday and are up about 20% this year.