Kroger Results Mostly Weaker Than Estimates as Albertsons Deal Remains Uncertain

Cars are parked in front of a Kroger store with art surrounding the blue Kroger logo.

Jeffrey Dean / Bloomberg via Getty Images

Kroger (KR) shares slipped Thursday after the grocery giant reported third-quarter results mostly below analysts' estimates.

The company reported $33.63 billion in revenue, below the $34.22 billion expected by analysts polled by Visible Alpha. Net income came in at $618 million, beneath the $659.3 million projection.

After stripping out one-time charges like costs related to the chain's proposed merger with Albertsons (ACI), Kroger's adjusted earnings per share (EPS) of $0.98 came in a penny above estimates.

Last quarter, interim Chief Financial Officer (CFO) Todd Foley said Kroger was beginning to see "positive customer trends" driving sales, which it expected to continue in the second half of the year. On Thursday, CEO Rodney McMullen said Kroger expects the "macroeconomic environment to remain uncertain near-term."

Kroger, Albertsons Await Outcome of FTC Suit

McMullen echoed previous comments about the outstanding legal challenge from the Federal Trade Commission (FTC) to Kroger's proposed merger with Albertsons, saying the company is "confident in the facts and the strength of our position."

The trial over the FTC's efforts to halt the merger ended in September, and Kroger has continued to say that it expects the deal to close in the fourth quarter.

Following last month's presidential election, Kroger and other stocks involved in pending mergers rose on sentiment that a second Trump administration would likely be more relaxed on regulatory issues than the Biden administration has been.

Kroger shares, which had gained about 30% this year through Wednesday's close, slipped 1% in premarket trading.

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  1. Kroger. "Kroger Reports Third Quarter 2024 Results and Narrows Guidance Range."

  2. Kroger. "Kroger Reports Second Quarter 2024 Results and Updates Full-Year Identical Sales Without Fuel Guidance."

  3. Kroger. "Kroger Announces Extension of Exchange Offers and Consent Solicitations for Albertsons Companies, Inc. Notes."

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