Kroger Co. (NYSE:KR) said that a tax adjustment as well as higher sales at its gas stations helped in pushing the company towards a second quarter profit.
The company’s earnings where boosted as drivers filled up their vehicles at Kroger where they offer a discount loyalty program which helps gas consumers save at the pump.
The nations largest grocer said on Friday that it earned a net income of $280.8 million, or 46 cents per share, a 7.3 percent increase from the $261.6 million, or 41 cents per share that the company reported during the same quarter last year. Excluding a one time tax adjustment the company would have reported earnings of 41 cents a share which would have come out slightly below analyst expectations of 43 cents per share earnings.
The company seen revenue climb by 11.5 percent during the period to $20.9 billion, topping Wall Street’s estimate of $20.5 billion. Revenue at store open at least 15 months rose by 5.3 percent, that figure excludes revenues received from fuel. The company now says its expects revenue at stores open at least 15 months to increase by 4 to 5 percent for the fiscal year, up from 3.5 to 4.5 percent.
Kroger’s has stood by its full year guidance of earnings between $1.85 to $1.95 a share. Analyst have predicted the company will reported earnings of $1.96 a share on revenue of $89.47 billion.
Currently Kroger’s is trading 6.3 percent lower at $21.88 a share. Analysts have an average price target of $26.79 per share on the company.
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