Kroger Co. (KR) Hits $1.34 Adjusted EPS in Q4, Surpassing Expectations
The Kroger Co. (NYSE: KR) has delivered its financial results for the fourth quarter and the full year of 2023, providing insights into its operational success, strategic investments, and future outlook amidst a dynamic retail environment.
Kroger reported a slight dip in identical sales without fuel, marking a 0.8% decrease, which contrasts with an underlying increase of 0.1% when excluding the impact of the termination of a significant pharmacy agreement.
Despite this, the company showcased resilience with a reported operating profit of $1,194 million and earnings per share (EPS) of $1.01. Adjusted figures were even more robust, with an adjusted FIFO operating profit of $1,307 million and an adjusted EPS of $1.34, benefiting from an additional 53rd week.
Kroger Co. Adjusted EPS Above Expectations in Q4
When compared to expectations, the company’s performance tells a tale of mixed results. The actual EPS of $1.01 fell short of the forecasted $1.13, underscoring the challenges faced during the quarter. However, the adjusted EPS of $1.34 surpassed expectations, highlighting Kroger’s ability to manage its finances effectively and benefit from strategic calendar adjustments. Furthermore, total company sales of $37.1 billion slightly exceeded the expected $37.02 billion, demonstrating Kroger’s continued capacity to generate revenue growth despite market challenges.
Guidance for the Future
Looking forward, Kroger has set a cautiously optimistic tone for 2024. The company anticipates identical sales without fuel to range between 0.25% and 1.75%, with an adjusted FIFO operating profit between $4.6 billion and $4.8 billion. Additionally, Kroger projects an adjusted net earnings per diluted share in the range of $4.30 to $4.50, showcasing confidence in its strategic direction and operational efficiency. These guidance figures reflect Kroger’s focus on sustainable growth and operational excellence.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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