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Kroger to Report Earnings After CEO Resignation, Merger Failure

1. Kroger's Q4 earnings expected to drop 16% year over year to $1.12 EPS. 2. Sales forecasted to decline nearly 7% to $34.6 billion amid market pressures. 3. CEO Rodney McMullen resigned, causing a C-suite shakeup but not alarming Wall Street. 4. Kroger continues to pursue growth despite legal issues from failed merger with Albertsons. 5. Management anticipates slight earnings beat, with solid growth in identical sales without fuel.

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FAQ

Why Bearish?

Sales and earnings forecast declines indicate potential weakening in financial performance, resembling past instances where similar announcements led to share price drops.

How important is it?

The article discusses significant earnings declines and CEO resignation, which likely influence investor confidence and stock performance.

Why Short Term?

The upcoming earnings report will immediately affect investor sentiment and price movements; previous earnings surprises in the sector have shown short-term volatility based on results.

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