Though the quarter is winding down, there are still earnings reports to come, including Walgreen Co. (NYSE: WAG) and Kroger Co. (NYSE: KR). Both companies are expected to report profit growth this coming week.
Walgreen is expected by analysts surveyed by Thomson Financial to report third-quarter earnings of 59 cents per share, up 6.8% from the same period of last year, on revenue of $15.1 billion. The company has provided positive surprises in four of the past five quarters -- by two cents in the previous quarter.
Based in Deerfield, Ill., Walgreen is the largest drug store chain in the U.S. in terms of sales, and has more than 6,200 stores in the U.S. and Puerto Rico. In the past year, the company's revenues were $53.7 billion and its net income totaled $2.0 billion. Its long-term EPS growth forecast is 14.0%, which is less than the retail industry average, as well as less than that of rival CVS Caremark (NYSE: CVS). The consensus recommendation of analysts has recently shifted from hold to buy Walgreen.
The share price is up 4.0% since the beginning of the year, and up from 11.6% from a year ago. It trades at a P/E ratio of 20.68. Shares closed Friday at $41.35.
Kroger is expected to report first-quarter net income of 55 cents per share, up 10.9% from the year-ago period, on revenue of $22.3 billion. The company has provided positive surprises in the past five quarters -- by a penny in the previous quarter.
Cincinnati-based Kroger is the nation's largest grocery chain, though Wal-Mart (NYSE: WMT) sells more groceries. Kroger has more than 3,600 stores, including supermarkets, department stores, and convenience stores. In the past year, the company's revenues were $70.2 billion and its net income totaled $1.2 billion. The company's long-range EPS growth forecast is 10.6%, less than the industry average and slightly less than that of rival Safeway (NYSE: SWY). The consensus recommendation of analysts remains to buy Kroger.
The share price is up 4.7% in the past three months, but has fallen 11.9% from a year ago. It trades at a P/E ratio of 15.92. Shares closed Friday at $26.61.
Walgreen is scheduled to report earnings Monday morning, Kroger on Tuesday morning.
For more news that could influence the results, see BloggingStocks' Walgreen coverage and Kroger coverage.
