Free Research Report as Kroger’s Quarterly Sales Climbed 12.4%; Adjusted EPS Rose 19%

LONDON, UK / ACCESSWIRE / April 18, 2018 / Active-Investors.com has just released a free earnings report on The Kroger Co. (NYSE: KR). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KR. Kroger reported its fourth quarter and fiscal 2017 operating and financial results on March 07, 2018. The United States' largest grocery chain by revenue beat sales expectations and provided guidance for fiscal 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Kroger most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Kroger's total sales increased 12.4% to $31.0 billion in the fourth quarter 2017 compared to $27.6 billion for Q4 2016. The Company's total sales, excluding fuel and the 53rd week, increased 2.7% on a y-o-y basis. Kroger's reported topped analysts' estimates of $30.8 billion.

During Q4 2017, Kroger's gross margin was 21.9% of sales. Excluding fuel, the 53rd week and the LIFO credit and charge, gross margin decreased 31 basis points from the year ago same period. Kroger recorded a LIFO credit of $54 million in the reported quarter compared to a $0.2 million LIFO charge in the year earlier corresponding quarter.

For Q4 2017, Kroger's operating, general and administrative (G&A) costs as a rate of sales – excluding fuel, the 53rd week and adjustment items – increased by 22 basis points, while rent and depreciation with the same exclusions declined by 9 basis points.

Kroger's net earnings totaled $854 million, or $0.96 per diluted share, for Q4 2017 compared to net earnings of $506 million, or $0.53 per diluted share, in Q4 2016. The Company's adjusted net earnings totaled $562 million, or $0.63 per diluted share, for the reported quarter. Kroger's adjusted net earnings were in-line with Wall Street's estimates of $0.63 per share.

For the full year 2017, Kroger's total sales increased 6.4% to $122.7 billion compared to $115.3 billion in FY16. Excluding fuel, the 53rd week and the Modern Health merger, the Company's total sales increased 2.2% on a y-o-y basis.

For FY17, Kroger's net earnings totaled $1.9 billion, or $2.09 per diluted share, compared to net earnings of $2.0 billion, or $2.05 per diluted share, in FY16. In FY17, the Company's adjusted net earnings totaled $1.9 billion, or $2.04 per diluted share, and excluding the restructuring of certain multi-employer pension obligations, the Company's adjusted net earnings were $2.0 billion, or $2.12 per diluted share, in FY16.

Financial Strategy

At the end of Q4 2017, Kroger's net total debt to adjusted EBITDA ratio increased to 2.65 on a 52-week basis, due primarily to funding various pension obligations. The Company's return on invested capital on a 52-week basis was 12.03% for 2017. Kroger's capital investments, excluding mergers, acquisitions, and purchases of leased facilities, totaled $3.0 billion for FY17 compared to $3.6 billion in FY16.

Kroger's financial strategy is to use its free cash flow to drive growth while also maintaining its current investment grade debt rating and returning capital to shareholders. Over the last four quarters, Kroger utilized its cash to contribute an incremental $1.2 billion pre-tax to Company-sponsored pension plans and $467 million pre-tax to satisfy withdrawal obligations to the Central States Pension Fund. The Company also repurchased 61 million common shares for $1.6 billion; paid $444 million in dividends; and invested $3.0 billion in capital.

Outlook

For fiscal 2018, Kroger is targeting identical supermarket sales growth, excluding fuel, to range from 1.5% to 2.0% in 2018. The Company is estimating net earnings to range from $1.95 to $2.15 per diluted share. Kroger is expecting capital investments, excluding mergers, acquisitions, and purchases of leased facilities, to be approximately $3.0 billion in 2018.

Stock Performance Snapshot

April 17, 2018 - At Tuesday's closing bell, Kroger's stock was marginally up 0.25%, ending the trading session at $24.23.

Volume traded for the day: 5.44 million shares.

Stock performance in the last month – up 2.28%; and previous six-month period – up 13.76%

After yesterday's close, Kroger's market cap was at $20.87 billion.

Price to Earnings (P/E) ratio was at 22.73.

The stock has a dividend yield of 2.06%.

The stock is part of the Services sector, categorized under the Grocery Stores industry. This sector was up 1.4% at the end of the session.

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