Kroger (NYSE: KR) will announce its first quarter earnings on Thursday, June 14, 2012. The company's stock price has fallen -10.9% over the last three months to close at $21.57 on June 8, 2012.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings.SEE: Surprising Earnings Results
What to Expect:
The consensus estimate for Kroger's earnings is 72 cents per share, up 2.9% from a year ago when the company reported earnings of 70 cents per share.
Three months ago, the consensus estimate was 73 cents. Analysts are expecting earnings of $2.32 per share for the fiscal year.
Revenue is expected to exceed last year's figure of $27.46 billion by 6.2% and come in at $29.15 billion for the quarter. For the fiscal year, expected revenue is $96.85 billion.
Company Performance:
Revenue for Kroger has been on the rise for four consecutive quarters. It increased 7.4% to $21.41 billion in the fourth quarter of the last fiscal year. Prior to that, the figure rose 10.1% in the third quarter of the last fiscal year, 11.3% in the second quarter of the last fiscal year and 10.9% in the first quarter of the last fiscal year.
The company has negative operating and net profit margins. The company's operating profit margin is -2%. Net profit margin is -1.4%.
The price is within 43 cents of its 52-week low of $21.14, which was set on September 12, 2011.
Kroger's stock price is on a downward streak. The share price has fallen 34 cents since June 4, 2012.
