Kroger Posts Q4 Earnings Beat: Healthy ID Sales Overshadowed By Profit Constraints, Analysts Say

Core Viewpoint - Kroger Co reported strong fourth-quarter earnings, leading to a rise in its share price amid a positive earnings season [1] Group 1: Analyst Ratings and Insights - BMO Capital Markets maintained a Market Perform rating with a price target of $63, noting a 2% decline in earnings excluding an extra week, but expects slight volume improvement through 2025 [2] - Telsey Advisory Group reiterated an Outperform rating with a price target of $73, highlighting adjusted earnings of $1.14 per share, which exceeded estimates of $1.11 per share, and reported ID sales growth of 2.4% [4] - Management guided for 2025 adjusted earnings of $4.60-$4.80 per share, slightly below the consensus of $4.82 per share, while emphasizing effective execution through fresh and own brand assortments, loyalty programs, and digital capabilities [5] Group 2: Financial Performance and Projections - Kroger's gross margins are expected to remain stable, with less upside potential due to the cycling of shrink tailwinds by mid-2025, although the company is positioned to manage the competitive environment effectively [3] - The company’s shares rose by 3.06% to $65.73 at the time of publication, reflecting positive market sentiment following the earnings report [5]