Kroger, the largest US supermarket chain, rose the most in five months after posting third-quarter profit that topped analysts’ estimates and boosting its earnings forecast for the year.
The shares climbed 2.6 per cent to $60.19 at 9:40 a.m. in New York and earlier advanced as much as 3.5 per cent for the biggest intraday increase since 19 June. Cincinnati-based Kroger had gained 48 per cent this year through yesterday.
Kroger has increased sales with its purchase of the Harris Teeter Grocery chain earlier this year and by selling more organic and natural food under its Simple Truth label. Falling gasoline prices also have left more cash in consumers’ pockets.
Third-quarter net income rose 21 per cent to $362 million, or 73 cents a share, Kroger said today in a statement. Excluding some items, profit was 69 cents a share. Analysts projected 61 cents, on average. Revenue climbed 11 per cent to about $25 billion.
Profit per share in the current year will be $3.32 to $3.36, up from an earlier forecast of $3.22 to $3.28, Kroger said today. Analysts estimated $3.29, on average.
Bloomberg News, edited by ESM
