Kroger to Post 2nd-Quarter Financial Results
- By Alberto Abaterusso
The Kroger Co. (NYSE:KR) - a supermarket chain headquartered in Cincinnati - will release its second-quarter results on Sept. 8.
For the quarter, analysts forecast Kroger will post an EPS of 39 cents on average, which represents a 17% decrease on a year-over-year basis. Analysts' estimates on the second quarter of fiscal 2017 earnings range between a low of 34 cents and a high of 42 cents.
Warning! GuruFocus has detected 3 Warning Sign with KR. Click here to check it out.
The intrinsic value of KR
Source: Yahoo Finance
Concerning revenue, this is expected to come in at $27.49 billion on average as shown in the chart below. This represents a 3.50% increase from the same item of one year ago.
Source: Yahoo Finance
Estimates on second quarter revenue range between a low of $27.23 billion and a high of $28.06 billion.
As of the first quarter of the current fiscal year, Kroger has approximately $356 million in cash on hand and securities or 40 cents per share. Total current assets are valued $10.34 billion and total current liabilities $12.86 billion, for a current ratio of 0.80. The industry average is 1.31. The quick ratio of Kroger is 0.29 versus an industry average of 1.24. Kroger's balance sheet is more leveraged than its peers with a total debt-equity ratio - computed over the 12 trailing months' time frame - of 219.41. The industry average is 111.38. The interest coverage ratio is 5.26, meaning that Kroger doesn't have any problem in paying interest expenses on its outstanding debt, but its industry shows a better ability with a ratio of 25.95.
GuruFocus gives Kroger an overall financial strength of 5 out of a total of 10.
The company has generated a cash flow of $4.5 billion from its operations over the last 12 months' period, of which nearly 13% was for the payment of dividend and investments for business growth purposes.
For the next year, analysts foresee a 2.50% growth in the company's earnings while for the next five years they expect Kroger's earnings will grow 0.34% on average every year.
GuruFocus gives Kroger a profitability and growth rating of 7 out of 10.
Kroger is currently trading at $22.55 per share on the New York Stock Exchange with a price-earnings (P/E) ratio of 13.58, a price-sales (P/S) ratio of 0.18 and a price-book (P/B) ratio of 3.40.
The analysts' average target price is $26.09, which represents a 16.3% upside from the current share price. The recommendation rating is 2.6 out of 5.
Kroger distributes an annual dividend of 50 cents through quarterly payments of 12.5 cents, for a dividend yield of 2.23% based on the current market value of the stock.
Disclosure: I have no positions in Kroger.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 3 Warning Sign with KR. Click here to check it out.
The intrinsic value of KR
