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Kroger shares (KR) fell on Thursday as the supermarket giant announced third-quarter earnings that largely missed analyst’s expectations.
Visible Alpha analysts polled predicted $34.22 billion, but the company’s revenue was $33.63 instead. Six hundred eighty-eight million dollars less than the estimated $659.3 billion was reported as net profit.
Kroger’s earnings per share adjusted to $0.98 was just a penny more than expected after subtracting one-time expenses, such as costs associated with the proposed merger between Albertsons and Kroger (ACI).
Todd Foley (interim Chief financial officer, CFO) said last quarter that Kroger had begun to see improvements. “positive customer trends” The company expects that the sales will continue to grow in the second part of the year. Rod McMullen, Kroger’s CEO said on Thursday that the retailer expects to see a 5% increase in sales. “macroeconomic environment to remain uncertain near-term.”
Kroger, Albertsons await outcome of FTC suit
McMullen reiterated his previous remarks about the Federal Trade Commission’s (FTC) outstanding challenge to Kroger’s proposed merger, adding that the company was “confident in the facts and the strength of our position.”
The FTC tried to halt this merger in court, but the trial ended in September. Since then Kroger has said that they expect to complete the deal in the 4th quarter.
Kroger, and other companies involved in mergers, rose after the election of last month. The stock market was optimistic that Trump would be more relaxed than Biden on issues of regulation.
Kroger shares, which had gained about 30% this year through Wednesday's close, slipped 1% in premarket trading.
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