Kroger beats by $0.01, beats on revs; raises FY15 guidance slightly
Reports Q2 (Jul) earnings of $0.70 per share, $0.01 better than the Capital IQ Consensus of $0.69; revenues rose 11.6% year/year to $25.31 bln vs the $24.92 bln consensus.
- Identical supermarket sales +4.8% ex-fuel.
- *Kroger recorded a $26 million LIFO charge during the second quarter compared to a $13 million LIFO charge in the same quarter last year. The company increased its LIFO estimate for the year to $100 million, resulting in an incremental $0.01 per diluted share charge to earnings in the second quarter. The effect of this charge is included in the company's updated guidance for 2014.
- The company's long-term net earnings per diluted share growth rate guidance remains 8 -- 11%, plus a growing dividend.
- Kroger raised its identical supermarket sales growth guidance, excluding fuel, to 3.5% to 4.25% for fiscal 2014. The previous guidance was 3.0% to 4.0%.
- Kroger continues to use cash flow from operations to maintain its current investment grade debt rating, repurchase shares, grow its dividend, and fund capital investments.