FY2027 EPS Estimates for Kroger Reduced by Erste Group Bank

Key Points

• Erste Group Bank cut Kroger’s FY2027 EPS estimate slightly to $5.20 from $5.24 and kept a Hold rating on the stock.
• Kroger’s latest quarterly results came in mixed: EPS missed by $0.01 at $1.58, while revenue beat expectations at $46.12 billion and rose 2.2% year over year.
• The company raised its quarterly dividend to $0.39 per share from $0.35, bringing the annualized payout to $1.56 and a yield of about 2.8%.

The Kroger Co. (NYSE:KR - Free Report) - Stock analysts at Erste Group Bank lowered their FY2027 earnings estimates for Kroger in a report issued on Thursday, June 25th. Erste Group Bank analyst H. Engel now anticipates that the company will earn $5.20 per share for the year, down from their prior forecast of $5.24. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Kroger's current full-year earnings is $5.22 per share. Erste Group Bank also issued estimates for Kroger's FY2028 earnings at $5.50 EPS.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly earnings data on Thursday, June 18th. The company reported $1.58 EPS for the quarter, missing the consensus estimate of $1.59 by ($0.01). The firm had revenue of $46.12 billion for the quarter, compared to the consensus estimate of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The firm's revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS.

KR has been the subject of a number of other research reports. Barclays set a $61.00 price objective on Kroger and gave the stock an "equal weight" rating in a research note on Monday, June 22nd. Wall Street Zen cut Kroger from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. Wolfe Research reissued an "outperform" rating and issued a $75.00 price target on shares of Kroger in a report on Thursday, March 5th. Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a research note on Monday, June 1st. Finally, Roth Mkm reaffirmed a "buy" rating and set a $78.00 price objective (up from $75.00) on shares of Kroger in a report on Friday, March 6th. Nine research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, Kroger presently has an average rating of "Moderate Buy" and an average target price of $71.94.

Kroger Trading Down 0.7%

Shares of KR stock opened at $55.52 on Wednesday. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79. The stock has a fifty day simple moving average of $63.97 and a two-hundred day simple moving average of $65.99. The firm has a market capitalization of $34.02 billion, a PE ratio of 32.66, a PEG ratio of 1.50 and a beta of 0.42. Kroger has a 52-week low of $54.97 and a 52-week high of $76.58.

Kroger Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Saturday, August 15th will be given a dividend of $0.39 per share. The ex-dividend date is Friday, August 14th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.8%. This is an increase from Kroger's previous quarterly dividend of $0.35. Kroger's dividend payout ratio is currently 82.35%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Ares Financial Consulting LLC purchased a new stake in Kroger during the 4th quarter valued at $25,000. Princeton Global Asset Management LLC boosted its stake in shares of Kroger by 268.1% during the 4th quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock worth $26,000 after purchasing an additional 303 shares during the period. MV Capital Management Inc. bought a new position in Kroger during the 4th quarter valued at about $26,000. Whipplewood Advisors LLC bought a new stake in Kroger in the first quarter worth about $27,000. Finally, Lloyd Advisory Services LLC. purchased a new position in shares of Kroger during the fourth quarter valued at approximately $28,000. Institutional investors own 80.93% of the company's stock.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is expanding its rewards program, adding new ways for shoppers to use points on groceries and fuel, which could help retain customers and support traffic. Kroger Revamps Rewards Program: New Ways to Use Points for Groceries and Fuel
• Positive Sentiment: The company is also promoting exclusive and seasonal offerings, including a celebrity-inspired line and Fourth of July products, which may help boost basket size and differentiate Kroger from rivals. Kroger rolls out exclusive celebrity line to win back shoppers
• Neutral Sentiment: Several articles highlighted Kroger as a long-standing, Buffett-associated consumer staple name and a potential value idea, but these are mostly commentary pieces rather than new business catalysts. The Kroger Co. (KR) Is One Of The Oldest Stocks In Warren Buffett’s Berkshire Hathaway’s Holdings
• Neutral Sentiment: Analyst coverage remains cautious: Morgan Stanley reportedly kept an Equal Weight rating and lowered its price target, which reinforces sentiment that upside may be limited near term. Is The Kroger Co. (KR) One of the Best Stocks to Buy Now For Good Returns amid Price Target Cuts?
• Negative Sentiment: Kroger was tied to a chicken product recall/allergen warning and a separate report showed the stock falling about 3.1%, both of which can weigh on investor sentiment. Check Your Freezer: Kroger and Fred Meyer Chicken May Contain Undeclared Allergen The Kroger Co (KR) Shares Fall 3.1% -- What GF Score of 79 Tells Investors

Kroger Company Profile

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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