Kroger Co KR maintained its winning streak of reporting an earnings beat in the second quarter. However, its sales fell short of expectations. The company also reduced its full year forecast.
The company earned a profit of $383 million, or $0.40 per share, down from $433 million, or $0.44 per share, in the year-ago period. Excluding charges, adjusted net earnings would have been $454 million, or $0.47 per share, higher than $433 million, or $0.44 per share, in the same period last year. Street analysts predicted an EPS of $0.45.
Kroger's total sales grew 4.0 percent from $25.5 billion to $26.6 billion. Excluding fuel, its total sales would have increased 7.3 percent. Street expected $26.79 billion sales.
Commenting on the results, Chairman and CEO Rodney McMullen said, "We are focused on long-term performance over a three-to-five year horizon. We have the right strategy, the right people, and the financial flexibility to execute our strategy, which allows us to continue investing in our associates and our business and growing market share."
Moving ahead, the company reduced its adjusted EPS from $2.19-$2.28 to $2.10-$2.20 for the full year citing continued deflation. Street is looking for an EPS of $2.20.
The stock traded down by $0.31, or 0.99 percent, to $31.00 in the pre-market on Friday.
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