This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kroger: Best of the Worst

NEW YORK ( TheStreet) -- Kroger (KR - Get Report) seems to be the best of the worst among supermarkets.

Food deflation and pricing wars with discounters are expected to sour Kroger's second-quarter earnings results when the company reports on Tuesday -- still, it continues to outperform the rest of the industry.

News You Need

Analysts expect the company to earn 44 cents in the second quarter. Citi analyst Deborah Weinswig forecasts total sales growth of 2.5% to $18.5 billion during the quarter.

Management did not provide second-quarter guidance, but did say full-year earnings will fall between $2 and $2.05 a share.

In its first quarter Kroger posted a 12% gain in profit to 435.1 million, or 66 cents a share, compared with $386 million, or 58 cents, in the year-ago period. Analysts expected earnings of 62 cents a share.

Sales, including fuel, declined to $22.8 billion from $23.1 billion, while same-store sales, excluding fuel, rose 3.1%

Traditional grocers like Kroger, Safeway (SWY) and Supervalu (SVU - Get Report) are up against discounters like Wal-Mart Stores (WMT - Get Report), BJ's Wholesale (BJ) and Costco Wholesale (COST - Get Report), which have been benefiting from shoppers trading down during our time of economic strife.

And Credit Suisse analyst Edward J. Kelly does not expect things to get much better in the second-half of the year.

Kelly rates Kroger and Safeway as outperform, while he rates Supervalu's stock as neutral.

Shares of Kroger were up 1% in morning trading to $21.97.

-- Reported by Jeanine Poggi in New York

Follow on Twitter and become a fan on Facebook.
Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SWY $35.10 -0.11%
COST $148.13 0.00%
KR $35.39 0.00%
SVU $5.03 0.00%
WMT $66.87 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs