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Kroger Reports This Morning, Oracle in the Afternoon; Red Hat & Finisar Rise

Dan Berman
Hot Stock Minute
Kroger Reports This Morning, Oracle in the Afternoon; Red Hat & Finisar Rise

First up is Kroger which reports quarterly earnings this morning. The supermarket is expected to post earnings of 88-cents a share up a dime from a year ago on revenue of more than $30-billion. Earlier this week Cantor Fitzgerald raised the stock’s price target to $33 from $26 citing the chain's strength with generic products. Though Cantor left the stock as a hold. Prior to this morning Kroger's shares are up 33% this year. The rise is part of a larger 53% climb that had the company hitting a new 52-week high just yesterday.

Next is Oracle, which reports after the closing bell. Consensus is for the company to post earnings of 87-cents a share up from 82-cents a year ago on higher sales. Key to the results will be corporate IT sales as more businesses move their operations to the cloud. The sense is that Oracle is being hurt by the shift. Oracle is down so far in 2013, although a climb late last year means it has gained 20% over the past 52-weeks.

Number three this morning is another software company: Linux-maker Red Hat, which is up 3.5% in early trading. That's because it edged past estimates when it reported results yesterday afternoon. Excluding items, earnings were 32-cents a share on $363-million in revenue. That's an 8% rise in sales. It has been a tough year for Red Hat shareholders with the stock down about 18%.

Finally, we look at another tech company, Finisar, which has been up 12% since yesterday's closing bell. What caused the jump? You guessed it. Earnings. Excluding items Finisar made 20-cents for the quarter, topping estimates by 3-cents. Revenue was in line with expectations at $243-million. Year-to-date this stock has been down 13%, so the gains we're seeing now put the stock back at the flatline.