Kroger Co. (KR), which we also looked at in our Week in Preview, is scheduled to discuss its financial results for the third quarter of 2009 in a conference call Tuesday, December 8, at 10:00 AM (ET). You can catch the live webcast of the call on the company's website.
During the three months that ended in October, the Cincinnati-based grocer welcomed a new senior VP and raised its quarterly dividend. Analysts surveyed by Thomson Reuters expect Kroger to report that its earnings fell two cents per share from a year ago to $0.37 per share. But revenue for the quarter is expected to total $17.7 billion, marginally higher than a year ago.
Looking ahead, analysts so far expect to see $1.94 per share (+2.1%) earnings and $76.2 billion in sales (up just slightly from a year ago) for the full year. Kroger has topped earnings estimates in four of the past five quarters, by as much as four cents per share.
Kroger's long-term EPS growth forecast is 9.0% and its earnings multiple is 11x. The First Call consensus recommendation is to buy KR, with a mean price target of $26.72. But the Motley Fool prefers competitor Safeway (SWY) to Kroger. Yet some options traders are bullish on KR ahead of the report.
Shares have been falling since mid October, recently dropping below the 50-day moving average, but jumped about 45 cents Monday morning from the open of $22.50. Shares are around 16% lower than a year ago.
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