Kroger Earnings On Deck – Stock Price 10% Down From Recent Highs

Kroger's stock price (NYSE: KR) has pulled back 10% from recent highs into earnings this morning, as markets take pause to determine the next leg for for KR. This decline into correction territory reflects perhaps some of the uncertainty ahead of the highly anticipated earnings report, along with some post dividend profit taking, and recent disruptions.

Analysts are expecting EPS to come in at $1.46 per share, on revenue of $45.31billion, reflecting a mild 0.08% gain Y/Y.

Kroger has a track record of earnings beats to point to, with each of the last four prints delivering an upside surprise.

In relation to the dividend, on March 13, 2025, Kroger's Board of Directors declared a quarterly dividend of $0.32 per share, payable on June 1, 2025, to shareholders of record as of May 15, 2025.

Hampering sentiment last month, investigations revealed widespread overcharging in Kroger stores due to expired sale signs, leading to higher prices at checkout. This problem, coupled with chronic understaffing, could undermine customer confidence and subsequently impact the company's financial performance.

The surprise resignation of CEO Rodney McMullen in March 2025 also raised questions about stability. While the appointment of Ron Sargent, former CEO of Staples, as interim CEO has provided that in the near term, uncertainty about long-term leadership continues to cast a shadow over the company.

While many analysts emphasize the challenges Kroger faces, one could argue that these very difficulties present the company with an opportunity to reinvent and strengthen itself. The failed merger with Albertsons could allow Kroger to focus on organic growth and innovation. The leadership crisis could be an opportunity to find a new leader who brings fresh ideas and a clear vision for the future. The operational problems could force Kroger to optimize its processes and improve the customer experience.

Recent updates on Kroger reveal some of the mixed view on the street. UBS maintained a “Neutral” rating on the stock on June 9, 2025, citing a balanced risk-reward profile ahead of the earnings release. Conversely, Guggenheim raised its price target for Kroger to $73.00 in April, signaling a more optimistic view. Melius Research also upgraded the stock in the past month from Sell to Hold, with a new target of $70 reflecting what the firm see as pharmaxy tailwinds and digital progress.

The average price target of $70.64 continues to reflect perceived upside from current levels, although the latest print could set in action re-ratings from the street.

Pay attention to guidance and outlook, moreso than previous actuals as far as directional clues. The shape of what is to come will likely matter more to markets than what has already been.