Earnings Preview: Kroger Co.

BY THE NUMBERS: Analysts polled by Thomson Reuters expect earnings of 61 cents per share, up three cents from last year's first quarter, with revenue up slightly to $23.3 billion from $23.1 billion last year. Kroger didn't offer first-quarter guidance.

ANALYST TAKE: Some analysts say the pressure to appeal to shoppers with low prices is making it more difficult for Kroger and other retailers to hit sales growth targets, although Kroger is positioned better than most.

"Kroger has benefited from consumers seeking better value, which we expect to continue," Scott A. Mushkin, a Jefferies and Co. analyst, said in a June 19 note to clients. "However, the current climate looks to be weighing on all retailers, with negative implications even for stronger players."

But Mushkin expects a solid earnings report and he rates Kroger stock a "buy."

WHAT'S AHEAD: Analysts want to hear how sales are trending in the second quarter, which began May 24, and what impact rising gas prices have had on store traffic and Kroger's own service-station sales and margins.

They also will want an update on upcoming union negotiations; some talks so far have been rocky. Denver-area workers in King Soopers stores recently voted overwhelmingly against a five-year offer, and King Soopers has asked a federal judge to block union representatives from coming into stores to talk to employees while they're working.