Will Kroger (KR) Beat Earnings Estimates? - Analyst Blog

By
A A A

The Kroger Co. ( KR ) is slated to report its second-quarter fiscal 2013 results on Sep 12, 2013. In the last quarter, it posted a positive surprise of 4.6%. Let's see how things are shaping up for this announcement.

A dominant position among the nation's largest grocery retailers enables Kroger to sustain growth in both its top and bottom line, expand its store base, and boost its market share. The company's strong corporate and national brands helped it gain customer loyalty. These factors, along with the Customer 1st strategy and effective cost management helped the company post better-than-expected results in the last quarter.

The Zacks Consensus Estimate for the second quarter currently stands at 60 cents a share, which rose by a penny in the last 60 days. However, no movement was noticed in the last 7 or 30 days. For fiscal 2013, the Zacks Consensus Estimate is pegged at $2.80 per share, and has not shown any movement over either 7, 30 or 60 days.

Looking at the earnings surprise history of Kroger, this Zacks Rank #2 (Buy) stock has outperformed the Zacks Consensus Estimate in the last 7 quarters by an average of 8.3%.

Our proven model shows that for a stock to beat earnings estimate this quarter, it needs to have a combination of two key components - a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method ) and a Zacks Rank #1, #2 or #3. Stocks with Zacks Rank #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Lumber Liquidators Holdings, Inc. ( LL ), Earnings ESP of +9.09% and a Zacks Rank #1 (Strong Buy).

The Home Depot, Inc. ( HD ), Earnings ESP of +1.12% and a Zacks Rank #2 (Buy).

The Buckle, Inc. ( BKE ), Earnings ESP of +1.10% and a Zacks Rank #3 (Hold).



BUCKLE INC (BKE): Free Stock Analysis Report

HOME DEPOT (HD): Free Stock Analysis Report

KROGER CO (KR): Free Stock Analysis Report

LUMBER LIQUIDAT (LL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: BKE , HD , KR , LL

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Your Car Is Spying on You
Your Car Is Spying on You           

Stocks

Referenced

100%
79%
100%
50%

Most Active by Volume

52,738,737
  • $28.52 ▼ 9.63%
48,072,223
  • $15.5399 ▲ 0.58%
42,306,642
  • $100.91 ▲ 0.38%
37,536,924
  • $8.15 ▲ 1.62%
29,100,865
  • $5.62 ▲ 22.98%
27,817,722
  • $39.105 ▲ 47.23%
26,568,415
  • $10.405 ▲ 1.51%
23,586,525
  • $13.07 ▲ 12.77%
As of 8/20/2014, 03:21 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com