Kroger Posts Q4 Earnings Beat: Healthy ID Sales Overshadowed By Profit Constraints, Analysts Say

Shares of Kroger Co KR rose in early trading on Friday after the company reported upbeat fourth-quarter earnings.

The results came in amid an exciting earnings season. Here are some key analyst takeaways.

BMO Capital Markets On Kroger

Analyst Kelly Bania maintained a Market Perform rating and price target of $63.

Kroger finished 2024 on a strong note, although its earnings declined by 2% excluding the extra week, Bania said in a note. The company expects volumes to improve slightly through 2025, he added.

Kroger expects its gross margins to remain flattish and there is "less upside potential given that shrink tailwinds helped 2024 and are expected to cycle by mid-2025," the analyst stated. The company's industry positioning "may allow it to continue managing the competitive environment with stable GM%, particularly as KR continues to improve digital profitability," she wrote.

Check out other analyst stock ratings.

Telsey Advisory Group On Kroger

Analyst Joseph Feldman reiterated an Outperform rating and price target of $73.

Kroger announced strong fourth-quarter results, with adjusted earnings of $1.14 per share slightly ahead of estimates of $1.11 per share, Feldman said. The company generated ID sales, ex-fuel, of 2.4% "in an uneven consumer spending environment," he added.

Management guided to 2025 adjusted earnings of $4.60-$4.80 per share, missing consensus of $4.82 per share, which includes inflation of 1.5%-2.5%, the analyst stated. "Kroger continues to execute well, leveraging its fresh and own brands assortments, its robust loyalty program, and enhanced digital capabilities," Feldman wrote.

KR Price Action: Shares of Krogerhad risen by3.06% to $65.73 at the time of publication on Friday.

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