Kroger shares close higher on Thursday, third-quarter comparable sales miss Wall Street estimates

December 7, 2018 9:57 am

Kroger Company’s (KR) quarterly comparable sales, reported on Thursday, fell short of Wall Street estimates, influenced by disruptions resulting from store remodeling as the company has sought to provide more shelf space for best-selling items.

Shares of Kroger Company closed higher for the sixth time in the past eleven trading sessions in New York on Thursday. It has also been the sharpest daily surge since October 30th. The stock went up 3.21% ($0.92) to $29.56, after touching an intraday low at $27.77, or a price level not seen since October 29th ($26.94).

Shares of Kroger Company have risen 7.69% so far in 2018 compared with a 0.84% gain for the benchmark index, S&P 500 (SPX).

In 2017, Kroger’s stock retreated 20.46%, thus, it underperformed the S&P 500, which registered a 19.42% return.

Kroger’s total revenue went down 0.3% year-on-year to $27.67 billion during the third quarter ended on November 10th. In comparison, analysts on average had expected revenue of $27.66 billion.

Excluding fuel, the US grocer’s comparable sales went up 1.60% year-on-year during the fiscal third quarter. That compares with a median analyst estimate pointing to a 1.65% growth.

Excluding fuel and an inventory valuation-related charge, the company’s gross profit margin shrank 91 basis points to 21.6% as a result of lower prices and rising cost of transportation.

Meanwhile, net income attributable to shareholders was reported to have dropped to $317 million ($0.39 per share) during the quarter ended on November 10th from $397 million ($0.44 per share) in the year-ago period.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Kroger Company’s stock price, have a median target of $31.00, with a high estimate of $36.00 and a low estimate of $24.00. The median estimate represents a 4.87% upside compared to the closing price of $29.56 on December 6th.

The same media also reported that 16 out of 27 surveyed investment analysts had rated Kroger Company’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Kroger Company (KR) are presented as follows:

Central Pivot Point – $29.92
R1 – $30.37
R2 – $31.09
R3 – $31.54
R4 – $32.00

S1 – $29.20
S2 – $28.75
S3 – $28.03
S4 – $27.32

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