The Kroger Co. is scheduled to report earnings before Thursday’s open. The stock hit a record high of $42.75/share in 2015 and is currently trading near $26/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Kroger is expected to earn $0.41/share on $28.42 billion in revenue. Meanwhile, the so-called Whisper number is $0.43. The Whisper number is the Street’s unofficial view on earnings.
Company Profile & Various Businesses:
Here is a brief company profile courtesy of Thomson Reuters:
The Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of February 3, 2018, it had operated approximately 3,900 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. As of February 3, 2018, Kroger operated, either directly or through its subsidiaries, 2,782 supermarkets under a range of local banner names, of which 2,268 had pharmacies and 1,489 had fuel centers. As of February 3, 2018, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 1,056 of its supermarkets. P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.
The Company competes with other supermarket and grocery stores such as: Walmart, Publix, Aldi, Costco, Wegman’s, WholeFoods, The Fresh Market, and Safeway, just to name a few.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.