Kroger (NYSE:KR): The supermarket chain has a history of beating on the bottom line and delivering in-line results on the top. Earnings growth has significantly decelerated throughout this streak and is expected to grow by 5% compared to a year earlier. Revenue on the other hand is trending up with sales growth projected 5% higher this quarter.
The company is well positioned to sustain this sales growth with its expanding store base and dominant market position. Moreover Kroger (KR) has gained ground in its organic offerings, attracting additional customers who had otherwise frequented Whole Foods. Shares are down 25% year to date and haven’t reacted well to the company’s near term upside.
Mattress Firm Holding Corp (NASDAQ:MFRM): In early august, Steinhoff International Holdings agreed to buy Mattress Firm (MFRM) for $64 per share, valuing the deal at about $2.4 billion. Prior to this Mattress firm shares had declined 52% from a year earlier as waning demand and discounting weighed on its results.
Friday's analyst call will likely shed some light on what management believes is in store for the company post acquisition. As for this quarter, earnings are projected to stabilize after a dismal first quarter. Analysts are forecasting a 3% increase on the bottom line and 10% on the top. Shares have historically struggled through earnings reports, but given the takeover and other oddities we’ve seen this season, it wouldn’t be shocking to see the stock pop Friday morning.