The Kroger Co. ($KR) Earnings (Q4 FY21)

 The Kroger Co. ($KR) Earnings and Opinion:


The Kroger Co. ($KR) is a company in the Consumer Defensive sector that operates in the Grocery Stores industry. The company is solely operated in the United States, with stores in 35 different states. The company was founded in 1883 and is currently headquartered in Cincinnati, Ohio. Kroger was first publicly traded in January of 1977


The Kroger Co. EPS and Revenue (Q4 FY21):

  • EPS of $0.91 beating expectations of $0.73
  • Revenue of $33.05B beating expectations of $32.64B
  • EPS was up 12.35% (YOY) and Revenue was up 7.52%

The Kroger Co. EPS and Revenue (FY21):

  • EPS of $3.68
  • Revenue of $137.89B
  • EPS was up 6.05% (YOY) and Revenue was up 4.07% (YOY)

The Kroger Co. Highlights and Notes:

  • Digital Sales Two-year stack grew 113%
  • Cost savings exceeded $1B for fourth straight year
  • Guidance (FY22) shows EPS of $3.75-$3.85
Opinion:
The Kroger Co. is currently trading higher before the market opens on Thursday. This is due to the fact that Kroger was able to beat all of its earnings expectations. EPS was up 12.35% (YOY) and Revenue was up 7.52% (YOY). The thing that stood out most to me, was the fact that digital sales grew by 113% in a two-year stack. Online shopping has became a popular thing during the pandemic. For Kroger to get into digital sales, is putting the company ahead of the ballgame and allowing them to keep up with competitors. I also like that they were able to exceed $1B in cost savings, yet again. Personally, I think this is a great company that is dominant in the Grocery Store industry. The stock has really skyrocketed after the market setback when Covid-19 first struck. Trading near all-time highs, Kroger has more room to go and is evident by their guidance for the 22 fiscal year. Kroger also currently pays a dividend, while it is not a large amount, it is still a return to shareholders. If the company continues normal operations and continues killing it on digital sales, then I could see a hike in the dividend in years to come. For now, this is not another bad buy and hold stock. The company seems to have shown a solid growth track over time and is continuing that, evidenced by the recent earnings results. 


*Information from Yahoo Finance and Kroger
*Estimates from Zacks

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