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Kroger tops 4Q profit forecasts

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Posted at 8:35 AM, Mar 03, 2016
and last updated 2016-03-03 10:03:38-05

CINCINNATI — Kroger Co. on Thursday reported fiscal fourth-quarter profit of $559 million. On a per-share basis, the Cincinnati-based company said it had profit of 57 cents. 

The results topped Wall Street expectations. But Kroger also fell $110 million shy of revenue estimates and warned that lower inflation could temper revenue growth in 2016. So, the stock fell more than 7 percent to $36.80 in early trading Thursday.

The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 54 cents per share.

The supermarket chain posted revenue of $26.17 billion in the period, which missed Street forecasts. Six analysts surveyed by Zacks expected $26.19 billion. Kroger expects full-year earnings to be $2.19 to $2.28 per share.

Kroger shares have dropped roughly 3 percent since the beginning of the year, while the Standard & Poor's 500 index has declined almost 3 percent. The stock has climbed 15 percent in the last 12 months.