Kroger the popular grocery store of the upper United States (I say upper because I’m in Florida and there isn’t a Kroger from Miami all the way to Tallahassee.) changed their Adj ESP or adjusted earnings per share from $2.95-$3.10 to $3.25-$3.35 a bold move but their not doing it just on a whim. Kroger CEO Rodney McMullen and Kroger chairmen’s had this to comment on the companies outlook for long-term sustainable growth.
“Our strategic focus on leading with fresh and accelerating with digital continues to build momentum across our business. Kroger’s seamless ecosystem is working. This was evident during the quarter as we saw customers seamlessly shift between channels, and we continued to see strong digital engagement. Customers are eating more food at home because it is more affordable, convenient, and healthier than other options.
“Our associates continue to support our customers and our communities through the pandemic by delivering a full, fresh, and friendly experience every day. We are committed to our environmental, social, and governance strategy to advance positive outcomes for people and our planet and create more resilient global systems, driven by our Zero Hunger | Zero Waste social and environmental impact plan.
“We are leveraging technology, innovation, and our competitive moats to deliver against the initiatives outlined at our 2021 investor day, and we remain confident in our ability to deliver total shareholder returns of 8% to 11% over time.”
While Kroger’s shares dipped down and rose back up on September 9ths trading day, Kroger is expecting a better second quarter then originally thought and furthermore has shown massive growth on a year to date basis.
A pretty obvious thing to assume if you ask me. With the lockdowns and the pandemic starting back in 2020 it’s pretty obvious that people got a lot more familiar with their local grocery store since it was one of the few places that people could actually go when they had to leave their homes to buy food.
Obviously this is why Kroger’s outlook is so positive and I would be inclined to agree with them.
So will it go up or down?
My guess is that Kroger will see a slight dip as earlier investors take out their profits and by mid day we should see a nice upward trend. Another way it could go is by shooting up in premarket and by opening shooting back down as investors take a quick and easy profit and then again by midday leveling out in a upward trend. Again this is pure speculation, no one can accurately predict the market every time but I do have a feeling that this one is kind of a no brainer.