Kroger Q2 Revenue Rises 2% to $34.62 Billion as Grocery Group Beats Estimates

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3▲2 ▼2Impact / 5
Summary · why it matters

Kroger reported second-quarter revenues of $34.62 billion, up 2% year on year and in line with analysts' expectations, as the four grocery store stocks tracked by the report collectively beat consensus revenue estimates by 0.7%. Kroger's quarter was satisfactory overall, with full-year EPS guidance beating analysts' expectations but a slight miss on gross margin estimates, and the stock is up 2.6% since reporting, trading at $58.45. Grocery Outlet posted the best quarter of the group, with revenues of $1.19 billion, up 1.1% year on year and 2.1% above expectations, alongside beats on EPS and EBITDA estimates; its shares are up 12.9% since reporting at $11.49. Albertsons had the weakest quarter, with revenues of $24.94 billion, flat year on year and 0.6% above expectations, but full-year EBITDA guidance missing significantly and a significant EBITDA miss; its stock is down 21.3% at $11.48. Sprouts reported revenues of $2.33 billion, up 4.7% year on year and in line with expectations, the fastest growth in the group, though next-quarter and full-year EPS guidance missed significantly, and its shares are down 17.1% at $65.63. On average, the group's share prices are down 5.7% since the latest earnings results.

Impact on assets 4

Consumer Staples± Mixed
Albertsons Companies
ACI
▼ NegativeCapitalrelevance

Albertsons had the weakest quarter with flat revenue, a significant EBITDA miss, and full-year EBITDA guidance missing significantly, sending shares down 21.3%.

Grocery Outlet Holding Corp
GO
▲ PositiveCapitalrelevance

Grocery Outlet posted the best quarter of the group with revenue, EPS, and EBITDA beats, and shares are up 12.9% since reporting.

Kroger Company
KR
▲ PositiveCapitalrelevance

Kroger's Q2 revenue rose 2% to $34.62B and full-year EPS guidance beat expectations, though gross margin slightly missed.

Sprouts Farmers Market LLC
SFM
▼ NegativeCapitalrelevance

Sprouts posted the fastest revenue growth but next-quarter and full-year EPS guidance missed significantly, with shares down 17.1%.