🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Kroger plunges after guidance comes up short

Published 03/07/2019, 08:19 AM
Updated 03/07/2019, 09:37 AM
© Apeel Sciences
KR
-
  • Kroger (NYSE:KR) reported fourth-quarter earnings and 2019 guidance that was below Wall Street expectations.
  • The stock fell more than 8% in pre-market trading Thursday morning.
  • Watch Kroger trade live.

Kroger reported disappointing fourth-quarter results and full-year fiscal 2019 guidance Thursday morning, sending shares down more than 8%.

Adjusted earnings per share came in at $0.48, missing the $0.53 that analysts surveyed by Bloomberg were expecting. Total sales for fiscal year 2018 decreased 9.5% to $28.1 billion, which included the effect of the company's divestiture of its convenience-store unit. Digital sales were up 59% year-on-year.

Chairman and CEO Rodney McMullen noted that the company continued to execute on its 2020 Restock Kroger restructuring plan, with identical sales ex-fuel up 1.8% for the quarter.

"We reached our FIFO operating profit goal and finished the year with sales and business momentum," McMullen said in the press release. "We have a clear path to achieve $400 million in incremental FIFO operating profit growth and $6.5 billion in cumulative Restockcash flow by the end of 2020."

The grocery-store chain provided 2019 full-year earnings guidance of $2.15 to $2.25, missing the Bloomberg consensus of $2.28.

The company also noted that its board of directors raised its dividend for the 12th straight year in 2018, paying $0.53 a share for fiscal year 2018.

Kroger was up 3.4% this year through Wednesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.