Supermarket chain Kroger's sales beat, forecast disappoints

[March 08, 2018]  (Reuters) - Supermarket chain Kroger Co <KR.N> on Thursday reported quarterly net sales that beat analysts' estimates, but issued a disappointing full-year profit forecast that sent its shares down 7 percent in premarket trading.

A logo of Kroger is displayed on a monitor above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., December 5, 2017. REUTERS/Lucas Jackson

The company said it expects full-year 2018 earnings of $1.95 per share to $2.15 per share, largely below the $2.15 analysts were expecting on average.

The company said it planned capital investments of about $3 billion in 2018, which excludes mergers, acquisitions and purchases of leased facilities.

Sales rose to $31.03 billion from $27.61 billion in the fourth quarter ended Feb. 3.

Analysts had expected sales of $30.83 billion, according to Thomson Reuters I/B/E/S.

Identical same-store sales in the fourth quarter rose 1.5 percent, slightly above the estimate of 1.45 percent.

Net earnings attributable to Kroger rose to $854 million, or 96 cents per share, from $506 million, or 53 cents per share, a year earlier.

(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila)

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