Kroger (KR) Beats Q1 Earnings Estimates
Kroger (KR) came out with quarterly earnings of $1.49 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.76%. A quarter ago, it was expected that this supermarket chain would post earnings of $1.12 per share when it actually produced earnings of $1.14, delivering a surprise of 1.79%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Kroger , which belongs to the Zacks Retail - Supermarkets industry, posted revenues of $45.12 billion for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $45.27 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kroger shares have added about 7.2% since the beginning of the year versus the S&P 500's gain of 1.7%.
While Kroger has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kroger: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.02 on $34.13 billion in revenues for the coming quarter and $4.74 on $149.07 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Supermarkets is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Retail-Wholesale sector, Levi Strauss (LEVI), has yet to report results for the quarter ended May 2025.
This jeans maker is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -18.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Levi Strauss' revenues are expected to be $1.37 billion, down 5.2% from the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Kroger Co. (KR) : Free Stock Analysis Report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq fall with focus on Trump Iran decision, Fed rate cuts, China chip tensions
US stocks turned lower on Friday as investors navigated a flurry of developments across multiple fronts. The Dow Jones Industrial Average (^DJI) gave up gains to fall below the flatline. The S&P 500 (^GSPC) erased early morning gains to fall 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.7%. A Fed governor floated the possibility of interest rate cuts by July, and President Trump put off a decision on whether he would authorize a US strike in Iran. Meanwhile, chip stocks took a hit after a Wall Street Journal report indicated the US wants to revoke waivers from top global semiconductor manufacturers used for accessing American technology in China. Nvidia (NVDA) fell around 1.1%. Trump has introduced a self-imposed two-week time limit on deciding whether to enter the Middle East conflict, via a message relayed on Thursday by the White House press secretary. While the move added another layer of uncertainty to an already cautious market, it also opened a window for diplomacy to persuade Iran to negotiate — an idea its president rejected strongly on Friday. Eyes are now on European efforts to get Iran back to the table and avert further escalation in tensions. Foreign ministers from France, the UK, and Germany are holding talks in Geneva with their Iranian counterpart. Meanwhile, Fed governor Chris Waller on Friday floated the possibility of rate cuts in July, arguing recent inflation data has been tame even amid the introduction of Trump's tariffs.. The central bank held interest rates steady this week, and Federal Reserve Chair Jerome Powell reiterated that policymakers are not rushing to ease, leading to a fresh attack from Trump. Waller's comments led to a slight uptick in bets on a July cut, though most traders are betting on the next cut coming in September, according to CME Group. Read more: The latest on Trump's tariffs The Dow Jones Industrial Average (DJI) gave up session gains to fall below the flatline. The broad-based S&P 500 (GSPC) and the tech-heavy Nasdaq Composite (IXIC) were also down. All three major averages were on pace to end the week in red territory on Friday as Israel and Iran entered their second week of fighting. Chip stocks were under pressure on Friday after a Wall Street Journal report indicated the US aims to rescind waivers that allow top global semiconductor makers to access American technology at their Chinese plants. Yahoo Finance's David Hollerith reports: Read more here. Oil was on track to close out its third week of gains as investors awaited President Trump's decision on whether the US would directly intervene in the Israel-Iran conflict. West Texas Intermediate futures (CL=F) traded just below $75 per barrel, and Brent crude (BZ=F), the international benchmark, hovered near $76. WTI and Brent were up nearly 3% for the week after volatile sessions following the outbreak of the Israel-Iran conflict last Friday. Wall Street analysts have remained cautious on the recent rally. On Friday, Citi said its researchers "see a lower risk of material energy flow disruptions from the conflict." "Affecting the oil supply is not to the benefit of Iran or the US. In the event Iran's 1.1 mbpd of oil exports are disrupted, the team estimates Brent prices could be $75–78/bbl — limited upside from current prices," wrote the analysts. Semiconductor stocks took a hit on Friday after a Wall Street Journal report indicated a top US official told top global semiconductor manufacturers he wants to rescind waivers used to access American technology in China. The move would once again inflame US-China trade tensions. Applied Materials (AMAT) and Lam Research (LRCX) both fell roughly 4%. Taiwan Semiconductor Manufacturing Company (TSM) and Broadcom (AVGO) also declined. Circle's (CRCL) massive rally shows no signs of cooling. The stablecoin issuer soared as much as 15% in early trading on Friday, extending its stunning post-IPO surge as Wall Street bets big on crypto's next major disruptor. "Circle as a top-tier crypto 'disruptor' with a sizeable future opportunity," Seaport Research Partners analyst Jeff Cantwell wrote on Friday. "On the back of an improving regulatory climate, we expect adoption globally of stablecoins such as USDC," he added. Cantwell initiated the stock with a Buy rating and a price target of $235 a share from Seaport Research Partners. During mid-morning trading on Friday, Circle stock hovered near $228. The move follows a surge of about 30% on Wednesday following the Senate's passage of the GENIUS Act, legislation that provides a federal framework for stablecoins, which are digital tokens backed by assets, such as the US dollar. US stocks rose on Friday following dovish comments from Fed Governor Chris Waller. Investors also digested President Trump's two-week deadline for deciding whether the US will directly get involved in the Israel-Iran conflict. The Dow Jones Industrial Average (^DJI) rose 0.3% while the broad-based S&P 500 (^GSPC) gained roughly 0.4%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4%. Oil prices fell after the White House said Trump would make his decision within two weeks, leaving room for diplomacy. Still, crude futures were on pace for a third week of gains. Dovish comments also sent stocks higher after Fed governor Chris Waller on CNBC's Squawk Box suggested that the Federal Reserve could move to lower interest rates in July. Waller said that any inflation from tariffs may be short-lived. US stock futures edged higher ahead of the opening bell, with contracts on the Dow Jones Industrial Average futures (YM=F) and S&P 500 (ES=F) rising roughly 0.3%, and those on the tech-heavy Nasdaq 100 (NQ=F) adding 0.4%. The move higher followed dovish comments from Fed governor Chris Waller on CNBC's Squawk Box, suggesting that the Federal Reserve could move to lower interest rates in July. Waller argued that any inflation from tariffs may be short-lived. "Any tariff inflation ... I don't think is going to be that big, and we should just look through it in terms of setting policy," Waller said. "The data the last few months has been showing that trend inflation is looking pretty good ... We could do this as early as July." Read more here. Yahoo Finance's Brooke DiPalma reports: Read more here. A recent memo from Amazon (AMZN) CEO Andy Jassy revived concerns about the scope of change to the labor market from artificial intelligence. While employers see growth and productivity, employees are worried about massive displacement in their jobs. And now, it's something the Federal Reserve is watching closely too: Hamza Shaban writes in today's Morning Brief: Read more here. Accenture (ACN) stock is down more than 4% after the global consultancy company reported new bookings decreased 6% to $19.7 billion in the quarter. Earnings topped estimates, with revenue coming in at $17.7 billion for the quarter, compared with analysts' average estimate of $17.30 billion, according to data compiled by LSEG. Reuters reports: Read more here. CarMax (KMX) stock climbed 11% in premarket trading after the used car dealer's first quarter earnings and revenue beat Wall Street expectations. CarMax sold 379,727 cars in the first quarter, a 5.8% increase from the same period last year. The company also reported earnings per share of $1.38, and revenue rose 6.1% to $7.55 billion, topping estimates. CarMax CEO Bill Nash said that its omnichannel buying and selling experience "is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share, and deliver significant year-over-year earnings growth for years to come.' Bloomberg reports: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock rose over 1% before the bell following reports that the EV maker had signed a $557 million energy storage station deal. This deal was announced two days before Elon Musk's expected launch of its robotaxi. Semiconductor maker, Wolfspeed's (WOLF) stock fell 4% premarket after reports emerged on Thursday it would be taken over by creditors inculding Apollo Global Management. The chipmaker has been struggling recently and the new proposal would put them into bankruptcy. GMS (GMS) stock was up 23% after the Wall Street Journal (WSJ) reported that Home Depot (HD) the home-improvement giant, has made an offer to acquire GMS, a building-products distribution company, citing people familiar with the matter. The WSJ did not specify a price. Economic data: Leading index (May); Philadelphia Fed Business Outlook (June) Earnings: Accenture (ACN), CarMax (KMX), Darden Restaurants (DRI), Kroger (KR) Here are some of the biggest stories you may have missed yesterday, overnight and early this morning: The Fed is also in 'wait and see' mode about AI taking jobs The Trump phone probably won't be built in the US Investors look past 'blah' Fed meeting Tesla signs deal for first China battery storage station: Report Trump to decide on Iran strike within two weeks Dealmaking in 2025: AI to the rescue Tariff talks with Canada, EU take focus as deadlines loom A $20B clock is ticking for OpenAI as Microsoft talks sour Trump blasts Powell again, calls for effectively 10 Fed rate cuts China's rare earth magnet shipments halve in May due to export curbs Why the US housing market is so stuck Shares of Pop Mart ( PMRTY) slid in Hong Kong after a call for stricter regulation of blind-box and trading cards in Chinese state media. That fueled concerns about prospects for the maker of furry Labubu elf dolls, whose explosive popularity has helped lift Beijing-based Pop Mart's market cap to around $40 billion — twice that of Hasbro (HAS) and Mattel (MAT) combined. Bloomberg reports: Read more here. Oil prices look set to end this week with gains for the third consecutive week in a row. Extreme tensions in the Middle East have put consistent upwards pressure on the commodity, with the recent eruption into outright violence leaving investors looking at supply chains and production facilities with concern. Reuters reports: ` Read more here. The Dow Jones Industrial Average (DJI) gave up session gains to fall below the flatline. The broad-based S&P 500 (GSPC) and the tech-heavy Nasdaq Composite (IXIC) were also down. All three major averages were on pace to end the week in red territory on Friday as Israel and Iran entered their second week of fighting. Chip stocks were under pressure on Friday after a Wall Street Journal report indicated the US aims to rescind waivers that allow top global semiconductor makers to access American technology at their Chinese plants. Yahoo Finance's David Hollerith reports: Read more here. Oil was on track to close out its third week of gains as investors awaited President Trump's decision on whether the US would directly intervene in the Israel-Iran conflict. West Texas Intermediate futures (CL=F) traded just below $75 per barrel, and Brent crude (BZ=F), the international benchmark, hovered near $76. WTI and Brent were up nearly 3% for the week after volatile sessions following the outbreak of the Israel-Iran conflict last Friday. Wall Street analysts have remained cautious on the recent rally. On Friday, Citi said its researchers "see a lower risk of material energy flow disruptions from the conflict." "Affecting the oil supply is not to the benefit of Iran or the US. In the event Iran's 1.1 mbpd of oil exports are disrupted, the team estimates Brent prices could be $75–78/bbl — limited upside from current prices," wrote the analysts. Semiconductor stocks took a hit on Friday after a Wall Street Journal report indicated a top US official told top global semiconductor manufacturers he wants to rescind waivers used to access American technology in China. The move would once again inflame US-China trade tensions. Applied Materials (AMAT) and Lam Research (LRCX) both fell roughly 4%. Taiwan Semiconductor Manufacturing Company (TSM) and Broadcom (AVGO) also declined. Circle's (CRCL) massive rally shows no signs of cooling. The stablecoin issuer soared as much as 15% in early trading on Friday, extending its stunning post-IPO surge as Wall Street bets big on crypto's next major disruptor. "Circle as a top-tier crypto 'disruptor' with a sizeable future opportunity," Seaport Research Partners analyst Jeff Cantwell wrote on Friday. "On the back of an improving regulatory climate, we expect adoption globally of stablecoins such as USDC," he added. Cantwell initiated the stock with a Buy rating and a price target of $235 a share from Seaport Research Partners. During mid-morning trading on Friday, Circle stock hovered near $228. The move follows a surge of about 30% on Wednesday following the Senate's passage of the GENIUS Act, legislation that provides a federal framework for stablecoins, which are digital tokens backed by assets, such as the US dollar. US stocks rose on Friday following dovish comments from Fed Governor Chris Waller. Investors also digested President Trump's two-week deadline for deciding whether the US will directly get involved in the Israel-Iran conflict. The Dow Jones Industrial Average (^DJI) rose 0.3% while the broad-based S&P 500 (^GSPC) gained roughly 0.4%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4%. Oil prices fell after the White House said Trump would make his decision within two weeks, leaving room for diplomacy. Still, crude futures were on pace for a third week of gains. Dovish comments also sent stocks higher after Fed governor Chris Waller on CNBC's Squawk Box suggested that the Federal Reserve could move to lower interest rates in July. Waller said that any inflation from tariffs may be short-lived. US stock futures edged higher ahead of the opening bell, with contracts on the Dow Jones Industrial Average futures (YM=F) and S&P 500 (ES=F) rising roughly 0.3%, and those on the tech-heavy Nasdaq 100 (NQ=F) adding 0.4%. The move higher followed dovish comments from Fed governor Chris Waller on CNBC's Squawk Box, suggesting that the Federal Reserve could move to lower interest rates in July. Waller argued that any inflation from tariffs may be short-lived. "Any tariff inflation ... I don't think is going to be that big, and we should just look through it in terms of setting policy," Waller said. "The data the last few months has been showing that trend inflation is looking pretty good ... We could do this as early as July." Read more here. Yahoo Finance's Brooke DiPalma reports: Read more here. A recent memo from Amazon (AMZN) CEO Andy Jassy revived concerns about the scope of change to the labor market from artificial intelligence. While employers see growth and productivity, employees are worried about massive displacement in their jobs. And now, it's something the Federal Reserve is watching closely too: Hamza Shaban writes in today's Morning Brief: Read more here. Accenture (ACN) stock is down more than 4% after the global consultancy company reported new bookings decreased 6% to $19.7 billion in the quarter. Earnings topped estimates, with revenue coming in at $17.7 billion for the quarter, compared with analysts' average estimate of $17.30 billion, according to data compiled by LSEG. Reuters reports: Read more here. CarMax (KMX) stock climbed 11% in premarket trading after the used car dealer's first quarter earnings and revenue beat Wall Street expectations. CarMax sold 379,727 cars in the first quarter, a 5.8% increase from the same period last year. The company also reported earnings per share of $1.38, and revenue rose 6.1% to $7.55 billion, topping estimates. CarMax CEO Bill Nash said that its omnichannel buying and selling experience "is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share, and deliver significant year-over-year earnings growth for years to come.' Bloomberg reports: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock rose over 1% before the bell following reports that the EV maker had signed a $557 million energy storage station deal. This deal was announced two days before Elon Musk's expected launch of its robotaxi. Semiconductor maker, Wolfspeed's (WOLF) stock fell 4% premarket after reports emerged on Thursday it would be taken over by creditors inculding Apollo Global Management. The chipmaker has been struggling recently and the new proposal would put them into bankruptcy. GMS (GMS) stock was up 23% after the Wall Street Journal (WSJ) reported that Home Depot (HD) the home-improvement giant, has made an offer to acquire GMS, a building-products distribution company, citing people familiar with the matter. The WSJ did not specify a price. Economic data: Leading index (May); Philadelphia Fed Business Outlook (June) Earnings: Accenture (ACN), CarMax (KMX), Darden Restaurants (DRI), Kroger (KR) Here are some of the biggest stories you may have missed yesterday, overnight and early this morning: The Fed is also in 'wait and see' mode about AI taking jobs The Trump phone probably won't be built in the US Investors look past 'blah' Fed meeting Tesla signs deal for first China battery storage station: Report Trump to decide on Iran strike within two weeks Dealmaking in 2025: AI to the rescue Tariff talks with Canada, EU take focus as deadlines loom A $20B clock is ticking for OpenAI as Microsoft talks sour Trump blasts Powell again, calls for effectively 10 Fed rate cuts China's rare earth magnet shipments halve in May due to export curbs Why the US housing market is so stuck Shares of Pop Mart ( PMRTY) slid in Hong Kong after a call for stricter regulation of blind-box and trading cards in Chinese state media. That fueled concerns about prospects for the maker of furry Labubu elf dolls, whose explosive popularity has helped lift Beijing-based Pop Mart's market cap to around $40 billion — twice that of Hasbro (HAS) and Mattel (MAT) combined. Bloomberg reports: Read more here. Oil prices look set to end this week with gains for the third consecutive week in a row. Extreme tensions in the Middle East have put consistent upwards pressure on the commodity, with the recent eruption into outright violence leaving investors looking at supply chains and production facilities with concern. Reuters reports: ` Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
E&E News
11 minutes ago
- E&E News
New rule-busting text circulating for Republican megabill
New language being floated for the Republicans' megabill would halt proposed federal regulations that generate financial impacts not explicitly authorized by Congress. Text obtained by POLITICO's E&E News that is currently under review by the Budget Committee would authorize the White House to review all proposed agency rules with 'a non-negligible budgetary effect.' Rules that would spend more than $100 million, and are not directly tied to a law authorizing such spending, would be cut. The text, which could be added to the budget reconciliation bill through an amendment or another procedure, is reminiscent of the 'Regulations from the Executive in Need of Scrutiny (REINS) Act,' which would give Congress final say over all major federal rules. Advertisement Energy and Natural Resources Chair Mike Lee (R-Utah) has been working on what he calls 'REINS-lite,' a version of the legislation intended to be more budgetary so it conforms with reconciliation rules.
Fox News
15 minutes ago
- Fox News
Pacers beat Thunder 108-91, How are they doing this? Breakfast Ball
All times eastern Making Money with Charles Payne FOX News Radio Live Channel Coverage WATCH: Tomi Lahren uncovers the business behind religion
