Kroger Co. Beats 2Q Estimates

The Kroger Company KR reported 2Q EPS at $0.41, $0.05 above Deutsche Bank's estimate and FY2010 EPS guidance was reaffirmed (at $1.60-1.80), giving Kroger yet another solid quarter due to better than expected sales & growth, and trends continue to improve, according to Deutsche Bank. For Deutsche Bank, FY2010 EPS is maintained at $1.79 and for FY2011 at $2.01. 3Q sales are off to a positive start so far, and management found it prudent to maintain its outlook despite beating out estimates in 2Q. Deutsche Bank maintains its Buy rating and $28 price target. The Kroger Company closed yesterday at $21.26.