Benzinga | Jun 16, 2021 10:18AM EDT

Kroger's Earnings Outlook

On Thursday, June 17, Kroger (NYSE:KR) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Kroger will report earnings of $1.0 per share on revenue of $39.61 billion. In the same quarter last year, Kroger reported earnings per share of $1.22 on revenue of $41.55 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be down 18.03%. Revenue would have fallen 4.67% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.69 0.67 0.55 1.09EPS Actual 0.81 0.71 0.73 1.22Revenue Estimate 30.86 B 29.97 B 29.95 B 40.72 BRevenue Actual 30.74 B 29.72 B 30.49 B 41.55 B

Stock Performance

Shares of Kroger were trading at $37.87 as of June 15. Over the last 52-week period, shares are up 18.42%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Kroger is scheduled to hold the call at 10:00:00 ET and can be accessed here.