Kroger’s Q4 Profit Plunges 27%, Still Beats View (KR)

in Gold Gold Investing by admin — March 9, 2010 7:14 am | no comments

Supermarket chain operator The Kroger Co. ( KR ) said Tuesday that its fourth quarter profit fell 27% from last year, despite higher sales, but results still beat analyst estimates. The Cincinnati-based company reported fourth quarter net income of $255.4 million, or 39 cents per share, compared with $349.2 million, or 53 cents per share, in the year-ago period. Sales rose 7% from last year, to $18.6 billion, aided by higher fuel sales as a result of gas discounts for regular customers. On average, Wall Street analysts expected a smaller profit of 34 cents per share, on much lower revenue of $17.73 billion. Kroger shares fell 70 cents, or -3.1%, amid a broad market sell-off in premarket trading Tuesday. The Bottom Line We have avoided shares of KR since our early June 2008 coverage began, when the stock was trading at $27.30. The company has a 1.66% dividend yield, based on last night’s closing stock price of $22.90. The shares have technical support in the $19-$20 price area. If the shares can firm up, we see overhead resistance around the $25 price level. We would remain on the sidelines. The Kroger Co. ( KR ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .