(Reuters) - Kroger Co (N:KR), the biggest U.S. supermarket operator by store count, reported a better-than-expected quarterly profit as the company cut costs and its comparable sales grew.
Shares of the company, which owns the Ralphs, Smith's and Food 4 Less grocery chains, rose nearly 3 percent in premarket trading on Thursday.
Kroger also raised its full-year earnings forecast to $2.02-$2.04 per share from $1.92-$1.98.
The company's third-quarter comparable sales, excluding fuel, increased 5.4 percent at stores open for more than a year without expansion or relocation.
Analysts on average had expected a 4.5 percent rise, according to research firm Consensus Metrix.
The net income attributable to Kroger rose 18.2 percent to $428 million, or 43 cents per share, beating the average analyst estimate of 39 cents per share, according to Thomson Reuters I/B/E/S.
Kroger's total sales increased 0.4 percent to $25.08 billion, missing analysts' expectations of $25.22 billion, mainly due to lower retail fuel prices.
Excluding fuel, total sales rose 5.5 percent.
Kroger's shares were trading at $39.19 before the bell. Up to Wednesday's close, the stock had risen about 19 percent this year.