Source: Company reports

1Q16 RESULTS

Kroger reported 1Q16 EPS of $0.70 versus the consensus estimate of $0.69. Total revenue was $34.60 billion versus expectations of $34.88 billion. Comps excluding fuel were up 2.4% versus consensus of 2.5%. Kroger is now offering ClickList and Express Lane online ordering services in 25 markets. Return on invested capital was 14.08% for the last 12 months, compared to 14.03% for the prior 12-month period.

2016 OUTLOOK

Full-year guidance calls for EPS of $2.19–$2.28, consistent with prior guidance. The company believes EPS will be at the low end to the midpoint of that range, based on current fuel margin trends. Kroger expects fuel margins to be at or slightly below the five-year average. Management also reaffirmed its supermarket sales growth guidance of 2.5%–3.5%, excluding fuel. The company expects capital expenditure to be in the $4.1–$4.4 billion range.