Kroger beats expectations
Money and Markets
Shares of Kroger slumped as The Wall Street Journal reported that a private equity firm had reached a preliminary deal to buy its rival Safeway. Kroger was thought to also be a possible suitor.
Earlier in the trading session, investors were encouraged as the supermarket operator reported a better than-expected-fourth quarter profit.
For the quarter ended February 1, Kroger said it earned $422 million, or 81 cents per share. Excluding one-time items, it earned 78 cents per share, topping the 72 cent per share Wall Street expected. A year ago, it earned $462 million, or 88 cents per share.
Revenue slipped to $23.22 billion, reflecting the shorter quarter with one less week compared with last year. But the results were above the $23.15 billion analysts expected.Associated Press