When Kroger Co. (KR) releases its third-quarter fiscal year 2024 results on December 5, it will probably show a top-line boost.
Kroger Q3 Earnings Forecast
The Analysts' Consensus Estimate for earnings is $34,295 million, representing a 1% rise over the reported amount from the previous year.
The bottom line is also anticipated to improve every year. Over the last 30 days, the estimate for fiscal third-quarter revenue per share has remained steady at 98 cents. The consensus figure implies a 3.2% increase over the previous year's quarter.
The company's average following four-quarter revenue surprise is 8.2%, signaling a positive outlook for the earnings trend.
With fuel excluded, the Estimate for the overall sale to retail customers is $30,080 million, representing a 1.7% increase from the previous year. According to the consensus, sales with no fuel should increase by 1.8%. Nonetheless, supermarket fuel revenues are predicted to drop 8.4% annually to $3,760 million, while other retail sales are expected to reach $284 million, an increase from $272 million the previous year.
KR Revenue Ecosystem Seems Potent
By offering a wide range of new products and upholding a smooth digital ecosystem, Kroger continues to build on its core competencies. These strategic initiatives strengthen Kroger's competitive edge in the retail industry and improve customer satisfaction. This laser-like focus probably aided the company's strong third-quarter performance, which allowed it to keep up its momentum in a challenging retail climate.
Kroger is cautiously positive about its revenue outlook for the remaining half of the year. The company's focus on strategy is in line with its expectation that customers will prioritize food and necessities.
KR Stock Bull Case: The Affiliation Program
With the help of programs like the Delivery Now scheme, the Boost affiliation program, and a growing number of customer fulfillment facilities, Kroger's online operation is still a major growth engine. Incremental growth is also probably a result of its other profit-making endeavors, such as Kroger Precision Marketing.
However, margins continue to be a source of worry, especially given the possible dangers associated with deleveraging in general, operating, and administrative costs. Monitoring these dynamics to understand how Kroger handled the quarter will be essential.
Kroger Stock (KR) Technical Analysis
In the daily chart of KR stock price, the ongoing market momentum is bullish as the recent price shows consecutive higher highs above crucial dynamic lines. Primarily, investors might seek long opportunities even if there is a minor bearish opportunity.
In the broader context, November 2024 came as a blessing as the Kroger stock price showed a decent buying pressure with a 8.31% gain throughout the month. As the most recent price hovers above the November high, we may expect a decent trend continuation.
On the other hand, the dynamic 200-day SMA provides major support, while the 50-day EMA is the immediate barrier to sellers.
Based on this structure, the minor divergence formation at the top could create a bearish correction, but it might not be enough to consider a trend change. Any bullish rebound from the 58.00 to 55.00 area could be a trend continuation signal, aiming for the 62.00 level.
On the other hand, any immediate bullish pressure with an exhaustion below the 55.41 high volume line could be a decent short opportunity, aiming for the 50.00 psychological level.
