Analysts Downgrade Kroger Forecasts Following Q3 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy KR?
Source: Benzinga
Quarterly Results: Kroger reported mixed third-quarter results, with adjusted earnings per share of $1.05 exceeding expectations, but sales of $33.859 billion fell short of the anticipated $34.155 billion.
E-commerce Performance: CEO Ron Sargent highlighted strong eCommerce growth and indicated plans for profitability by 2026 following a strategic review.
Sales Guidance Update: CFO David Kennerley revised the company's identical sales guidance for the year to a range of 2.8% to 3.0%.
Analyst Ratings and Price Targets: Following the earnings announcement, several analysts adjusted their price targets for Kroger, with most maintaining their ratings but lowering targets between $70 and $80.
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Analyst Views on KR
Wall Street analysts forecast KR stock price to rise
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 68.640
Low
68.00
Averages
75.00
High
85.00
Current: 68.640
Low
68.00
Averages
75.00
High
85.00
About KR
The Kroger Co. is a food and drug retailer. The Company operates supermarkets, multi-department stores and fulfillment centers throughout the United States. It operates approximately 2,731 supermarkets, 2,273 pharmacies and 1,702 fuel centers in over 35 states and the District of Columbia while also operating online through a digital ecosystem to offer customers an omnichannel shopping experience. The Company also manufactures and processes food for sale in its supermarkets and online. It offers Pickup and Harris Teeter ExpressLane personalized, order online, pick-up at the store services at approximately 2,412 of its supermarkets and provides delivery, which allows it to offer digital solutions to substantially all of its customers. Its delivery solutions include orders delivered to customers at retail store locations, customer fulfillment centers and orders placed through third-party platforms. The Company also offers customer-facing apps and interfaces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Release Announcement: Kroger is set to release its fourth-quarter earnings before the market opens on March 5, with analysts projecting earnings per share of $1.20, an increase from $1.14 in the previous year, indicating steady improvement in profitability.
- Revenue Growth Expectations: According to Benzinga Pro, Kroger's quarterly revenue is expected to reach approximately $35.03 billion, up from $34.31 billion last year, reflecting the company's ongoing growth potential in the retail market.
- Analyst Rating Downgrade: Ahead of the earnings report, Wells Fargo analyst Edward Kelly downgraded Kroger from Overweight to Equal-Weight and lowered the price target from $70 to $68, which may affect investor confidence in the stock.
- Dividend Yield Insights: With an annual dividend yield of 2.04% and a quarterly dividend of $0.35, investors aiming for $500 monthly in dividends would need to invest around $294,191, highlighting the attractiveness and investment threshold of the dividend strategy.
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- Earnings Release Announcement: Kroger is set to release its fourth-quarter earnings before the market opens on March 5, with analysts projecting earnings per share of $1.20, an increase from $1.14 in the previous year, indicating steady improvement in profitability.
- Revenue Growth Expectations: According to Benzinga Pro, Kroger's quarterly revenue is expected to reach approximately $35.03 billion, up from $34.31 billion last year, reflecting the company's ongoing growth potential in the retail market.
- Analyst Rating Downgrade: Ahead of the earnings report, Wells Fargo analyst Edward Kelly downgraded Kroger from Overweight to Equal-Weight and lowered the price target from $70 to $68, which may affect investor confidence in the stock.
- Dividend Yield Insights: With an annual dividend yield of 2.04% and a quarterly dividend of $0.35, investors aiming for $500 monthly in dividends would need to invest around $294,191, highlighting the attractiveness and investment threshold of the dividend strategy.
See More
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- Strong Employment Data: The ADP report indicates that private payrolls increased by 63,000 in February, surpassing the Dow Jones estimate of 48,000, which suggests a robust recovery in the labor market and alleviates concerns about economic slowdown.
- Services PMI Rebound: The Institute for Supply Management's Services PMI rose to 56.1 in February, the highest level since July 2022, indicating a rebound in economic activity, while the drop in prices paid by service organizations suggests potential easing of inflationary pressures.
- Oil Market Volatility: Despite ongoing conflict in Iran, oil prices saw their first decline on Wednesday, reflecting market concerns over rising energy prices, and comments from the Treasury Secretary may influence the oil market and overall market sentiment.
- Apple's New Product Launch: Apple introduced the new MacBook Neo with a starting price of $599, significantly lower than other models, appealing to budget-conscious consumers and expanding its share in the lower-priced laptop market.
See More
Kroger to Announce Q4 Earnings on March 5th
- Earnings Announcement: Kroger is set to release its Q4 earnings on March 5th before the market opens, with consensus EPS estimated at $1.20, reflecting a 5.3% year-over-year increase, and revenue expected at $35.03 billion, up 2.1%, which could positively influence investor sentiment.
- Historical Performance: Over the past two years, Kroger has beaten EPS estimates 100% of the time, although it has only surpassed revenue estimates 25% of the time, indicating strong stability in profitability but challenges in revenue growth.
- Estimate Revision Trends: In the last three months, EPS estimates have seen four upward revisions and twelve downward adjustments, while revenue estimates experienced three upward and twelve downward revisions, reflecting analyst divergence on the company's future performance, which may affect market sentiment.
- Competitive Landscape: Kroger faces competitive pressure from Publix, which is expanding into Kroger's territory, potentially sparking a grocery price war in Kentucky, which could impact Kroger's market share and profitability.
See More
Target Revamps Merchandise Strategy to Attract Shoppers
- Merchandise Strategy Overhaul: Target plans to revamp its merchandise strategy over the next year, expecting net sales to rise about 2% compared to last year, addressing the challenge of four consecutive quarters of declining customer traffic.
- Fresh Food Expansion: The company will expand the square footage dedicated to fresh foods, planning to double the space in over half of its remodeled stores, aiming to attract more customers for one-stop shopping.
- Beauty Product Upgrade: Target will launch a 'Beauty Studio' in over 600 stores, replacing its partnership with Ulta Beauty, focusing on prestige beauty brands to attract younger consumers and boost sales.
- Home Goods Reconstruction: With home goods sales declining nearly 7% year-over-year, Target plans to rebuild the display area for these products over the next few years, expecting to redesign 75% of its home decor items to regain market competitiveness.
See More
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- AST SpaceMobile Earnings Outlook: AST SpaceMobile, Inc. (NASDAQ:ASTS) is set to report its Q4 results after Monday's close, with Wall Street anticipating a loss of 16 cents per share on revenue of $41.11 million, indicating competitive pressures in the market.
- CrowdStrike Growth Target: CrowdStrike Holdings, Inc. (NASDAQ:CRWD) will release its earnings after Tuesday's close, with investors keen to see if it can achieve at least 50% year-over-year growth in net new ARR, confirming its 20% growth trajectory and justifying its premium valuation.
- Broadcom Earnings Focus: Broadcom Inc. (NASDAQ:AVGO) is expected to report its Q1 results on Wednesday afternoon, with analysts forecasting EPS of $2.02 on revenue of $19.14 billion, while investors will be watching if AI semiconductor revenue doubles to $8.2 billion.
- JD.com Earnings Preview: JD.com, Inc. (NASDAQ:JD) is expected to release its results before Thursday's open, with Wall Street predicting a loss of 3 cents per share and revenue of $50.22 billion, reflecting the challenges and opportunities in the Chinese e-commerce market.
See More
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- New Product Line Launch: Kroger introduces over 20 new Private Selection meals designed to provide high-quality, convenient dining options for busy customers, catering to global flavor preferences and expected to attract more consumers.
- High Value Proposition: The new line offers restaurant-quality flavors at affordable prices, with Group VP Ann Reed stating that this allows customers to enjoy delicious meals in minutes without spending a premium, enhancing customer satisfaction.
- Convenient Shopping Experience: Customers can easily purchase the new products in-store or via Kroger.com, with delivery available in as little as 30 minutes, further enhancing shopping convenience to meet modern consumer demands.
- Membership Benefits: Boost by Kroger Plus members enjoy double fuel points and exclusive discounts, increasing customer loyalty while attracting more consumers to join the membership program, driving sales growth.
See More
