Erste Group Bank Brokers Lower Earnings Estimates for Kroger

Key Points

• Erste Group Bank trimmed Kroger's FY2027 EPS estimate to $5.24 (from $5.25) and downgraded the stock to a "Hold," which matches the market consensus EPS of $5.24.
• Kroger's most recent quarter beat EPS estimates ($1.28 vs. $1.20) while revenue slightly missed at $34.73 billion, and management has set FY2026 guidance of $5.10–$5.30 EPS.
• Analysts are split (eight Buys, nine Holds) with a consensus target of $74.56; shares trade near $66.91, carry a high P/E (~43.7), and Kroger announced a quarterly dividend of $0.35 (about a 2.1% yield).

The Kroger Co. (NYSE:KR - Free Report) - Erste Group Bank dropped their FY2027 earnings per share (EPS) estimates for Kroger in a note issued to investors on Monday, April 27th. Erste Group Bank analyst H. Engel now forecasts that the company will post earnings of $5.24 per share for the year, down from their prior forecast of $5.25. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Kroger's current full-year earnings is $5.24 per share.

Kroger (NYSE:KR - Get Free Report) last announced its earnings results on Thursday, March 5th. The company reported $1.28 EPS for the quarter, beating the consensus estimate of $1.20 by $0.08. Kroger had a return on equity of 41.08% and a net margin of 0.69%.The business had revenue of $34.73 billion for the quarter, compared to analysts' expectations of $35.10 billion. During the same period in the prior year, the business posted $1.14 earnings per share. The firm's revenue was up 1.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS.

A number of other equities research analysts have also commented on KR. Wells Fargo & Company lowered Kroger from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $70.00 to $68.00 in a research report on Wednesday, February 25th. Morgan Stanley set a $73.00 price target on Kroger and gave the company an "equal weight" rating in a research report on Thursday, March 5th. BMO Capital Markets reissued a "market perform" rating and issued a $70.00 price target on shares of Kroger in a research report on Thursday, March 5th. Weiss Ratings reissued a "hold (c)" rating on shares of Kroger in a research report on Friday, March 27th. Finally, Wall Street Zen raised Kroger from a "hold" rating to a "buy" rating in a research report on Saturday, April 4th. Eight investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, Kroger presently has a consensus rating of "Hold" and a consensus target price of $74.56.

Kroger Price Performance

Shares of KR opened at $66.91 on Wednesday. Kroger has a 52-week low of $58.60 and a 52-week high of $76.58. The company has a debt-to-equity ratio of 2.66, a quick ratio of 0.42 and a current ratio of 0.80. The business's 50 day moving average price is $70.40 and its two-hundred day moving average price is $66.81. The firm has a market cap of $40.99 billion, a PE ratio of 43.73, a price-to-earnings-growth ratio of 1.75 and a beta of 0.55.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Ares Financial Consulting LLC purchased a new stake in Kroger during the fourth quarter valued at about $25,000. MV Capital Management Inc. purchased a new stake in Kroger during the fourth quarter valued at about $26,000. Princeton Global Asset Management LLC lifted its holdings in Kroger by 268.1% during the fourth quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock valued at $26,000 after purchasing an additional 303 shares during the last quarter. Avalon Trust Co purchased a new stake in Kroger during the third quarter valued at about $29,000. Finally, Lloyd Advisory Services LLC. purchased a new stake in Kroger during the fourth quarter valued at about $28,000. Institutional investors own 80.93% of the company's stock.

Kroger Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Friday, May 15th. Kroger's dividend payout ratio is 91.50%.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is turning its annual Wellness Festival into a multi-city, in-store tour for 2026 — a move likely to boost community engagement, drive store traffic and reinforce Kroger’s health/wellness positioning. Kroger Wellness Festival leaves Cincinnati for 2026, shifts to other cities
• Positive Sentiment: Consumer coverage highlights recent Kroger private‑label wins and new product buzz (e.g., a Kroger breakfast sandwich gaining traction and a roundup of “best new items”), which can lift margins and basket spend if adoption scales. The 8 Best New Items To Grab At Kroger In May 2026
• Positive Sentiment: Kroger earned a platinum rating for career growth in a workforce analysis — a positive for talent retention and execution capacity across stores and operations. Kroger Earns Platinum Rating For Career Growth
• Neutral Sentiment: Analysts expect Kroger’s upcoming quarter to show a single‑digit EPS increase; investors will focus on traffic trends, margin cadence and management commentary. What to Expect From Kroger's Next Quarterly Earnings Report
• Neutral Sentiment: Valuation discussion: recent pullback has reopened the debate over whether KR’s premium P/E and growth outlook are priced in — a mixed signal for longer‑term buyers. Is Kroger (KR) Offering Value After Recent Pullback
• Negative Sentiment: Erste Group downgraded Kroger from “buy” to “hold,” which can pressure sentiment among growth‑oriented investors. Analyst downgrade report
• Negative Sentiment: State-level policy moves (e.g., Maryland exploring bans on “surveillance pricing” for grocers/delivery platforms) introduce regulatory risk that could affect pricing strategies and margin levers going forward. Maryland surveillance pricing article
• Negative Sentiment: Recent short-term price weakness and coverage noting a pullback (and a daily decline reported in market summaries) keep near-term sentiment cautious ahead of earnings. Kroger stock declines summary

About Kroger

The Kroger Co NYSE: KR is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger's stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.

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