What Analysts Think of Kroger Stock Ahead of Earnings

Core Insights - Kroger is set to report its third-quarter results, while its proposed merger with Albertsons is facing legal challenges from the FTC [1][2] - Analysts anticipate an increase in sales and profits compared to the previous year, but the average price target indicates a potential decline in Kroger's stock from recent highs [1][3] - The FTC has presented arguments against the merger, claiming it would negatively impact competition, while Kroger and Albertsons argue it would enhance their ability to compete with larger retailers [6][7] Financial Expectations - Kroger is expected to report revenue of $34.23 billion, reflecting a 0.8% year-over-year increase, and a profit of $662.6 million, which is a 2.6% rise [4] - The average target price for Kroger's stock is $58.80, suggesting a potential decrease from its recent closing price of $61.08, which is the highest in over two years [3] Legal Context - The trial regarding the FTC's lawsuit to block the merger concluded with closing arguments in September, with a decision pending [5][6] - Kroger maintains confidence in the merger's potential benefits and expects it to close in the fourth quarter of this year [5][8]