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Kroger beats Q2'19 EPS, net income estimates

Kroger Co. fiscal second-quarter earnings results exceeded analyst expectations Sept. 12 as the Cincinnati-based chain confirmed its previous 2019 guidance.

Adjusted EPS at the grocer of 44 cents surpassed the S&P Global Market Intelligence mean consensus estimate for normalized EPS of 41 cents. Adjusted net earnings of $357 million beat the Market Intelligence estimate for net income excluding exceptions of $332.6 million.

Kroger confirmed its forecast for fiscal 2019 identical sales growth excluding fuel of between 2% and 2.25%, as well as its target range for adjusted EPS of between $2.15 and $2.25. On a GAAP basis, EPS is expected to be between $2.30 and $2.40.

The company said it still expects capital investments of between $3 billion and $3.2 billion for the year, as well as an adjusted tax rate of between 22.3% and 22.8%.

Sales increased slightly to $28.17 billion for the quarter ended Aug. 17, while identical sales grew 2.2%, or 2.5% excluding fuel, dispositions and mergers.

The identical sales result was the fastest clip since Kroger began implemented "Restock Kroger," a plan to reduce costs, increase operating profit and add more digital capabilities to the business, Chairman and CEO William Rodney McMullen said in a statement.

Shares of Kroger were 0.5% higher at $25.70 in premarket trading Sept. 12. The owner of the Fred Meyer and Dillons grocery chains reported results before U.S. markets opened.