Why Kroger (KR) Shares Are Gaining Today - Kroger (NYSE:KR)

Kroger Co KR reported third-quarter FY22 sales growth of 7.2% year-on-year to $34.19 billion, beating the consensus of $33.95 billion.
Identical Sales without fuel increased by 6.9%.
Adjusted EPS of $0.88 beat the analyst consensus of $0.82.
Gross margin was 21.4%, and the FIFO gross margin rate, excluding fuel, decreased by 5 basis points Y/Y.
Operating, general and administrative expenses rose 8% Y/Y to $5.6 billion.
Operating margin was 2.5%, and operating income for the quarter fell 3.1% to $841 million.
Kroger held $916 million in cash and equivalents as of November 5, 2022. Net cash provided by operating activities year-to-date totaled $3.3 billion.
Inventories as of November 5, 2022, increased 15.2% to $8.7 billion.
The company had a net total debt of $12.5 billion as of November 5, 2022.
The company plans to continue paying its quarterly dividend and expects this to increase over time. Kroger has already paused its share repurchase program to prioritize de-leveraging following the proposed merger with Albertsons Companies, Inc. ACI.
Outlook: Kroger raised the FY22 adjusted EPS outlook to $4.05 - $4.15 (prior outlook $3.95 - $4.05) versus the consensus of $4.08.
It expects FY22 Identical sales without fuel to be 5.1% - 5.3% (prior view 4.0% - 4.5%).
Price Action: KR shares are trading higher by 2.64% at $50.49 on the last check Thursday.
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