Kroger Reports Q4 Earnings Above Expectations Despite Decline

Kroger Co. posts Q4 earnings exceeding estimates despite a decline. The report indicates a decrease in revenue, which could impact stock performance moving forward.

Date: 06-03-2025

AI Rating: 5

Earnings Analysis: Kroger Co.'s fourth-quarter earnings reveal a mixed performance. While the reported earnings totaled $634 million, equivalent to $0.90 per share, which is a decrease from $736 million or $1.01 per share last year, the earnings did surpass the analysts' expectations of $1.11 per share (adjusted) as the company reported adjusted earnings of $800 million, or $1.14 per share.

The slight outperformance in adjusted earnings may provide some support for investor sentiment, as Kroger managed to exceed expectations despite a year-over-year decline.

Revenue Growth: The revenue figures paint a less optimistic picture. Kroger's revenue for the period fell by 7.4%, dropping to $34.308 billion from $37.064 billion in the previous year. This significant reduction in revenue could raise concerns regarding the company's overall growth trajectory and its ability to maintain profitability in the future.

Overall Ratings: Based on the earnings figures, while Kroger exceeded earnings expectations, the revenue drop is a significant concern. Therefore, the earnings rating can be assessed as a 6 due to meeting expectations but falling significantly below last year's figures. The revenue drop leads to a concern which might lower investor confidence, rating it a 4. In total, considering both earnings and the large revenue decline, the overall rating for Kroger is a 5.

Stocks: KR