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Shares of Kroger (NYSE:KR) are up over 3% higher in premarket Friday after the company reported solid Q2 results.
KR reported an EPS of $0.90 to beat the analyst estimate of $0.80. Revenue for the quarter came in at $34.6 billion versus the consensus estimate of $34.23 billion.
In response to strong demand for groceries, Kroger raised its FY EPS guidance to $3.95-$4.05, up from the prior $3.85-$3.95 and higher than the consensus estimate of $3.96.
“Our second quarter results provide another proof point that Kroger has the right go-to-market strategy. Our consistent execution of this strategy is building momentum in our business which, combined with sustained food at home trends, gives us the confidence to raise our full-year guidance,” Kroger said in a client note.
The outlook for identical store sales, excluding fuel, is also raised.
“We remain confident in our ability to deliver attractive and sustainable total shareholder returns of 8-11% over time.”
A Goldman Sachs analyst expects KR shares to trade higher on Friday in response to the “2Q beat (including stability in gross margin ex-fuel) and raised FY22 guidance.”
