The Kroger Company (KR) recently posted better-than-expected fourth-quarter 2009 results. The quarterly earnings of 39 cents a share surpassed the Zacks Consensus Estimate of 34 cents but fell 26.4% from 53 cents reported in the prior-year quarter.
The quarterly earnings topped the Zacks Consensus Estimate by 14.7%. In the third and second quarters of 2009, quarterly earnings missed the consensus by 25% and 11.4%, respectively.
The shares of Kroger are down 10 cents or 0.44% to $22.80 in Tuesday morning trading.
Despite a 7.2% increase in the total revenue to $18,554.5 million (including fuel center sales) earnings tumbled on account of an increase in merchandise costs (up 9.9%), operating, general and administrative expenses (up 2.8%) and depreciation and amortization (up 5.8%).
Kroger, the largest grocery retailer in the nation, forecasted fiscal year 2010 earnings between $1.60 and $1.80 per share. The current Zacks Consensus Estimate for fiscal 2010 is $1.80 per share.
Excluding fuel center sales, total revenue climbed 2%; comparable supermarket sales jumped 1.6% to $15,535.3 million, whereas identical supermarket sales (stores that are open without expansion or relocation for five full quarters) rose 1.2% to $15,062.2 million.
Kroger, which faces stiff competition from Wal-Mart Stores Inc. (WMT), Safeway Inc. (SWY) and Whole Foods Market Inc. (WFMI), now expects identical supermarket sales (sans fuel) growth of 2% to 3% for fiscal year 2010.
Including fuel center sales, comparable supermarket sales climbed 5.8% to $17,237.5 million, whereas identical supermarket sales rose 5.5% to $16,710.4 million.
Kroger ended the quarter with cash and cash equivalents of $1,078.2 million, long-term debt of $7,477.3 million, and shareholders’ equity of $4,905.9 million. Capital expenditures for the quarter reached $458.9 million. Trailing-twelve months’ net total debt to EBITDA ratio was 1.97, up from 1.88 in the same period last year.
During the quarter, Kroger bought back 4.2 million shares at an average price of $21.08 per share aggregating $88 million. At the end of the quarter, the company had $337.1 million at its disposal under the $1 billion share repurchase program announced in January 2008.
Read the full analyst report on “KR”
Read the full analyst report on “WMT”
Read the full analyst report on “SWY”
Read the full analyst report on “WFMI”
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