Mammoth grocery-store chain The Kroger Co. (NYSE: KR) recently posted very solid third quarter (3Q) results. Total sales increased 10% to $16 billion for the quarter. that marks the 10th quarter in a row that Kroger has posted sales increases of at least 3%. Year-to-date (YTD) total sales increased 7.6% to $53 billion. 3Q net earnings were equally impressive, $253.8 million or $0.37 per diluted share. that represents a $39 million improvement by 3Q 2006 net earnings. Grocery stores have notoriously low profit margins, so it speaks well of Kroger management that Kroger earned these good numbers while increasing profit margins slightly, expanding capital investment to $555 million, growing its own line of biological goods, while simultaneously decreasing general administrative expenses.

YTD net

earnings stand at $857.6 million or $1.22 per diluted share, a 20% increase by 2006 results. Given the strong comparable stores sales growth, Kroger CEO David Dillon has raised FY 2007 guidance to reflect 5% overall sales growth, which will exceed the preceding guidance figure of $1.67 per diluted share. Kroger repurchased 16.5 million shares in 3Q 2007, for a total of $442 million, with $200 million leftover for 4Q buybacks.

Investors were perhaps hoping for even better news from Kroger. The stock lost by 8% of its value in the preceding week, and closed at $25.88 on 19 December, down $0.29.

Original post by Victoria Erhart

mortgage student loan consolidation tax insurance home equity stock market law payday loans real estate foreclosure