Investing.com -- Shares in Kroger Company (NYSE:KR) surged on Friday, after the nation's largest supermarket chain increased its profits during the second quarter by nearly 25% amid decreasing fuel costs.
Kroger, which also owns Harris Teeter, Ralphs and Smith's Supermarkets among others, posted net earnings of $455 million or 0.44 per diluted share during its second quarter, which ended in mid-August. Last year during the same period, the Cincinnati-based supermarket giant, reported earnings of $347 million or 0.35 per diluted share.
At the same time, Kroger's revenues rose by 0.9% to $25.54 billion, as same supermarket sales, excluding fuel costs, soared by 5.3%. It marked the company's 47th consecutive quarter of same supermarket sales growth, when fuel costs were discounted. Analysts expected Kroger to earn revenues of $25.5 billion on 0.39 per share.
"We are pleased with our second quarter performance," Kroger CEO Rodney McMullen said in a statement. "Our core food business continued its strong performance and we benefitted from fuel margins that expanded throughout the quarter."
Citing a strong performance over the first half of the fiscal year, Kroger raised its net earnings per diluted share guidance to a range between $1.92 and $1.98 a share, up from a range of $1.90 to $1.95. The company also upwardly revised its outlook for same supermarket sales, excluding fuel costs, to a range of 4.0% to 5.0% from a previous outlook of 3.5% to 4.5%.
"Our team of associates continues to drive our Customer 1st strategy by taking care of our customers in big and small ways," McMullen added. "We continue to earn customer loyalty and gain market share."
"We are investing to grow our business for the future while delivering on our promises today. For example, our stores are hiring to fill 20,000 new, permanent jobs and we are expanding our digital and ecommerce offerings. Our confidence in Kroger has never been stronger."
Kroger ended Friday's session as the top performer on the S&P 500. Shares in Kroger jumped 1.89 or 5.34% to close at 37.29.