Kroger’s stock experienced a surge on Thursday morning, reaching a peak of $54.75 around 11 a.m., marking an 8.44% increase.

This upward movement followed the release of the company’s Q4 earnings report, which surpassed analyst expectations for earnings per share.

In the quarter ending January, Kroger reported earnings of $1.34 on revenue totaling $37.06 billion, significantly exceeding the projected $1.13 per share estimated by analysts.

The year-over-year revenue growth was 6.44%, and Kroger provided a forecast for net earnings per diluted share in the range of $4.30 to $4.50 for fiscal year 2025.

The adjusted earnings for the entire year were $4.76 per share, showcasing an 8% growth in adjusted earnings per share, Supermarket News reported.

While identical sales, excluding fuel sales, showed a 0.8% decrease for the quarter, including fuel sales resulted in a 0.1% increase.

The full-year identical sales reflected a 0.9% increase, rising to 2.3% when incorporating fuel sales, according to the company’s report.

Kroger expressed confidence in maintaining a robust free cash flow and affirmed its commitment to ongoing investments in the business, aiming for long-term sustainable net earnings growth while preserving its current investment grade debt rating.

The grocery chain also stated its intention to continue paying a quarterly dividend, with potential increases over time, pending approval by the board of directors.

Notably, Kroger communicated a pause in its share repurchase program, prioritizing de-leveraging following the proposed merger with Albertsons.

Written by B.C. Begley