Kroger (KR, $25.60) misses earnings and revenue estimates, posts lower-than-expected guidance
Kroger disappointed on earnings for the latest quarter reported, and put forward a guidance weaker than anticipated.
The supermarket chain raked in adjusted earnings of 48 cents per share for the three months ending in January, falling short of analysts’ expectations of 44 cents per share. The earnings-per-share was also lower than the year-ago quarter’s figure, by more than -11%.
Group sales of the company declined -11% year-over-year to $28.1 billion in the quarter, missing the Street consensus expectation of $23.38 billion.
Looking ahead, Kroger expects full year 2019 earnings to be in the range of $2.15 to $2.25 per share, which is below analysts' estimate of $2.26 per share (based on Refinitiv data).
However, CEO Rodney McMullen sounded optimistic, as he emphasized, "Kroger solidly delivered on what we set out to do in 2018, which was an investment year that laid the groundwork for us to achieve our 2020 Restock Kroger targets including financials.” He is hopeful that the company would achieve $400 million in incremental FIFO operating profit growth and $6.5 billion in cumulative Restock cash flow by the end of 2020.
KR's RSI Indicator sits in oversold zone for 1 day
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KR advanced for three days, in of 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
KR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KR as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for KR turned negative on June 18, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 56 similar instances when the indicator turned negative. In of the 56 cases the stock turned lower in the days that followed. This puts the odds of success at .
KR moved below its 50-day moving average on May 20, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.277) is normal, around the industry mean (4.786). P/E Ratio (32.608) is within average values for comparable stocks, (52.305). KR's Projected Growth (PEG Ratio) (0.539) is slightly lower than the industry average of (0.950). Dividend Yield (0.025) settles around the average of (0.021) among similar stocks. P/S Ratio (0.241) is also within normal values, averaging (20.524).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
an operator of supermarkets and convenience stores
Industry FoodRetail
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