Supermarket chain Kroger (KR) is set to release its first-quarter 2025 results on June 20. The stock has gained over 30% in the past year, driven by stronger-than-expected earnings, a rise in digital sales, and a favorable tariff environment. Wall Street analysts expect the company to report earnings of $1.46 per share, reflecting about 2% year-over-year growth.
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However, revenues are expected to decline by 0.2% from the year-ago quarter to $45.16 billion, according to data from the TipRanks Forecast page. It’s important to note that Kroger has outperformed EPS estimates in all of the past nine quarters.
Top Analyst’s Views Ahead of Kroger’s Q1 Print
Ahead of the Q1 report, Citi analyst Paul Lejuez has maintained a Neutral rating and a $65 price target on Kroger stock. The 5-star analyst expects Kroger to deliver solid results for the first quarter, with estimated earnings per share of $1.47, slightly above the Street’s forecast of $1.46. Same-store sales are also expected to come in a bit stronger than expected, rising 2.5% versus the 2.4% consensus. Looking ahead, he believes that Kroger will likely stick to its full-year forecast, given the uncertain economy and rising competition from rivals like Walmart (WMT).
Overall, the analyst thinks Kroger is in a good spot for now because of lower tariff risks. But over time, it may face tough competition from Walmart’s low prices and strong online shopping options.
Options Traders Anticipate a Minor Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 4.62% move in either direction.
Is Kroger Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Kroger stock based on six Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Kroger price target of $72.55 per share implies 10.73% upside potential.
