Kroger stock surged Tuesday as the company reported better-than-expected earnings and boosted its outlook. For the second quarter, income came in at $267.3 million ($0.38/share), an increase over last year's $209 million ($0.29/share). Analysts expected $0.34/share. Sales climbed to $16.14 billion from $15.14 billion a year ago, beating analysts' targets of $16.02 million. Same-store sales were up 5.8%. David B. Dillon, Kroger's CEO said, "The performance of Kroger's business through the first half of 2007 exceeded our expectations, and our momentum heading into the second half of the year causes us to raise our identical sales and earnings guidance for fiscal 2007." The company now forecasts same-store sales growth at 4% to 5%, and expects 2007 earnings of $1.64 to $1.67 a share, up from its previous estimate of $1.60 to $1.65. Kroger stock was up 6.7% to $28.82 in midday trading Tuesday.
Sources: Press release, TheStreet.com, Briefing.com
Commentary: Kroger May Win the Mega-Store Battle • Kroger's Earnings Growth a Huge Bonus
Stocks/ETFs to watch: KR. Competitors: SWY, WMT. ETFs: FXG, PBJ
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