Kroger Slips Despite Upbeat Quarterly Results

(RTTNews) - Shares of The Kroger Co. (KR) are falling more than 8% Friday morning despite reporting better-than-expected second-quarter results.

Net income in the second quarter decreased to $467 million or $0.61 per share from $819 million or $1.03 per share in the same quarter a year ago.

Excluding items, earnings of $0.80 per share beat the average estimate of 18 analysts polled by Thomson Reuter at $0.64 per share.

Sales for the quarter increased to $31.682 billion from $30.489 billion last year. The consensus estimate was for $30.68 billion.

The company said its digital sales two-year stack grew 114%.

Looking forward to the full year, Kroger has raised its adjusted earnings outlook to $3.25 - $3.35, up from previous guidance of $2.95 to $3.10. Analysts see earnings of $3.06 per share for the period.

KR is at $42.09 currently. It has traded in the range of $30.35- $47.99 in the last one year.