Kroger Company (NYSE:KR) is set to release earnings before Thursday's U.S. market open. Both EPS and revenue look to continue an upward trend, which has been fairly in line with both Estimize and Wall Street predictions. For Q1 EPS, the Estimize community is slightly more optimistic than Wall Street, coming in one cent higher at $.58. Based on previous Q1s, we should see a large increase in revenue, and the Estimize community sees $35,570 million, which is slightly higher than the street.
As a jack-of-all-trades, Kroger is mostly known for its supermarkets, although it also operates department stores, jewelry stores and convenience stores across the United States. Kroger operates in a market that is extremely saturated with competitors like Wal-Mart (NYSE:WMT) and bargain-brand chain Aldi. However, Kroger recently cought a break when Marsh supermarkets filed for bankruptcy, selling 11 of its 44 stores to a Kroger subsidiary. While many investors worry about the retail sector, supermarkets are a business with staying power. While online grocery services like Instacart, Amazon (NASDAQ:AMZN) Fresh and Fresh Direct have tried to undermine brick-and-mortar grocers, there will always be a market for those that like to pick out their produce and other items in person. Consumers can live without the newest pair of shoes or pants, but food is something that will always be in style.
12-Month Price Target: $35
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