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@Theta_collctv 1 month ago

Kroger up 5% on mixed Q4 earnings - EPS beat but revenue missed estimates

Kroger up 5% on mixed Q4 earnings - EPS beat but revenue missed estimates

Kroger stock is up nearly 5% today after mixed Q4 results. They beat earnings expectations with adjusted EPS of $1.28 versus the $1.20 estimate, but revenue came in slightly light at $34.7B. Sales growth was slow at 1.2% year over year, mostly because of lower fuel prices. If you strip out fuel, same-store sales grew 2.4%. The highlight was free cash flow, which almost doubled to $3.4B for the full year. Looking ahead, management guided for 1-2% sales growth (ex-fuel) in 2026 and expects EPS between $5.10 and $5.30. The stock is currently trading at roughly 13.7x forward earnings with a 2% dividend yield.
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@ProduceCut309 1 month ago

Solid quarter from Kroger. The EPS beat and strong free cash flow seem to be outweighing the slight revenue miss, which explains the positive market reaction.

@AntonioMyers 1 month ago

the dividend and the cash flow make kroger a really interesting defensive play. do you think the sales growth will pick up later this year?