Kroger Co (NYSE:KR, ETR:KOG) shares climbed almost 5% in pre-market trading, potentially its highest in over two years, after it reported fourth-quarter profits that beat Wall Street analyst forecasts.
The supermarket chain, fresh from the US Federal Trade Commission-led attempt to block its takeover of Albertsons, posted results showing operating profits of $1.19 billion or $1.01 per share.
Net attributable profits of $736 million or earnings per share were $1.01. While if adjusted for investment costs and costs related to mergers and acquisitions, EPS was $1.34.
This compared to the Street consensus expectations of $1.13, per FactSet.
Revenue of $37.06 billion was short of the $37.25 billion average estimate.
Kroger's guidance full-year 2024 EPS was for between $4.30 and $4.50, on sales growth excluding fuel of 0.25-1.75%.
It expects to generate adjusted free cash of $2.5 billion to $2.7 billion.
It said it expects to continue to pay its quarterly dividend and expects this to increase over time, but has paused its share repurchase program "to prioritize de-leveraging following the proposed merger with Albertsons".