=Kroger (KR) reported earnings on Thur 2 March 17 (b/o)

Kroger beats by $0.01, beats on revs with comps below ests; guides FY18 EPS in-line:

• Reports Q4 (Jan) earnings of $0.53 per share, $0.01 better than the Capital IQ Consensus of $0.52; revenues rose 5.5% year/year to $27.61 bln vs the $27.31 bln Capital IQ Consensus. 
  • Identical supermarket sales, without fuel, of -0.7% in the fourth quarter vs. 'slightly positive' guidance
  • Gross margin was 22.2% of sales for the fourth quarter. Excluding fuel, recent mergers and the LIFO charge, gross margin decreased 22 basis points from the same period last year.
• Co issues in-line guidance for FY18, sees EPS of $2.21-2.25 vs. $2.23 Capital IQ Consensus Estimate. Kroger anticipates identical supermarket sales, excluding fuel, to range from flat to 1% growth for 2017, just below estimates. Kroger expects the operating environment in the first half of 2017 to be similar to the second half of 2016. The company's results in the second half of 2017 are expected to show improvement as the company cycles the previous year. The company expects capital investments, excluding mergers, acquisitions and purchases of leased facilities, to be in the $3.2 to $3.5 billion range for 2017.
• Over the long term, Kroger is committed to achieving a net earnings per diluted share growth rate of 8 -- 11%, plus a growing dividend.