Why did Kroger stock pop today?
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Kroger (KR +10.7%) soared after blasting past consensus marks with its Q4 earnings report and setting favorable guidance. Shares traded as high as $55.50 before settling back a bit.
Total company sales increased 3.7% during the quarter compared to the same period last year after fuel sales were backed out. Operating profit came in at $3.5B for the grocery store chain vs. $2.8B a year ago.
Evercore ISI said in its post-earnings breakdown of the grocery store operator that Kroger (NYSE:KR) is executing at a high level amidst a favorable food retail landscape, although further share price upside is seen as limited. For FY22, the company expects identical sales growth without fuel of 2.0% to 3.0% and adjusted EPS of $3.75 to $3.85 vs. $3.43 consensus.
Analyst Grge Melich: "Risk remains for KR and grocer peers from elevated competition vs. other retail sectors, normalization of food at home vs. food away from home trends, and ongoing labor cost/freight/transport headwinds, that Kroger’s defensive positioning and USD cash flow should help differentiate amidst a choppy consumer backdrop."
Dig into Kroger's earnings call transcript.
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